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Elon Musk and Tesla leadership have consistently emphasized the importance of long-term thinking. A 17-year-old "master plan" outlined that new technologies—particularly electric vehicles—are initially expensive but can be optimized over time for mass adoption.
Tesla's strategy involves entering at the high end of the market with premium models, where customers are willing to pay a premium for advanced features and performance. Over time, Tesla aims to drive down costs aggressively, enabling the release of more affordable models that will appeal to broader demographics. This phased approach allows Tesla to generate substantial cash flow, which is reinvested into research and development (R&D) to continually lower vehicle costs and improve battery and manufacturing technologies.