A Tesla co-founder and former CEO said on Tuesday it's a “shame” the carmaker is scrapping its low-cost car plans amid fierce competition in China.
Martin Eberhard was speaking at the HSBC Global Investment Summit in Hong Kong. On Friday, Reuters reported Tesla was cancelling its long-promised inexpensive car investors had been counting on to drive growth.
The decision represents an abandonment of a long-standing goal Tesla chief Elon Musk has often characterised as its primary mission: affordable electric cars for the masses. His first “master plan” for the company in 2006 called for manufacturing luxury models first, then using the profit to finance a “low cost family car”.
“We've both read in the news, Tesla delaying or eliminating their low-end Model 2 programme, which is a shame for them, but it's a sign China has a chance to spread there,” Eberhard said.
Tesla's cheapest car, the Model 3 sedan, retails for about $39,000 (R720,926) in the US. The now-cancelled entry-level vehicle, sometimes described as the Model 2, was expected to start at about $25,000 (R462,218).
Three sources told Reuters that while Tesla had scrapped plans for its inexpensive car it would continue to develop self-driving robotaxis on the same small-vehicle platform.
Tesla did not immediately respond to a request for comment.
Former Tesla CEO says it's a 'shame' company is cancelling low-cost car plans
Image: Nicki Dugan / Wikimedia Commons
A Tesla co-founder and former CEO said on Tuesday it's a “shame” the carmaker is scrapping its low-cost car plans amid fierce competition in China.
Martin Eberhard was speaking at the HSBC Global Investment Summit in Hong Kong. On Friday, Reuters reported Tesla was cancelling its long-promised inexpensive car investors had been counting on to drive growth.
The decision represents an abandonment of a long-standing goal Tesla chief Elon Musk has often characterised as its primary mission: affordable electric cars for the masses. His first “master plan” for the company in 2006 called for manufacturing luxury models first, then using the profit to finance a “low cost family car”.
“We've both read in the news, Tesla delaying or eliminating their low-end Model 2 programme, which is a shame for them, but it's a sign China has a chance to spread there,” Eberhard said.
Tesla's cheapest car, the Model 3 sedan, retails for about $39,000 (R720,926) in the US. The now-cancelled entry-level vehicle, sometimes described as the Model 2, was expected to start at about $25,000 (R462,218).
Three sources told Reuters that while Tesla had scrapped plans for its inexpensive car it would continue to develop self-driving robotaxis on the same small-vehicle platform.
Tesla did not immediately respond to a request for comment.
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