Part 5/12:
Tesla’s Product Strategy: The Quest for an Affordable Vehicle
A central theme in Tesla's long-term strategy is the development of a cheaper, compact vehicle priced around $25,000 to $30,000. Elon Musk has reiterated that Tesla still intends to produce this affordable car, crucial for expanding the mass-market appeal and achieving broader adoption.
Historically, Tesla deferred this project to focus resources on autonomous vehicles (FSD, or Full Self-Driving). However, recent statements suggest that Tesla is actively working on lowering vehicle costs. Musk highlighted that the key breakthrough is in achieving full autonomy, which would drastically reduce the cost of transportation—by a factor of four to five.