'It is excruciatingly difficult to make this car for $35,000 and still be financially sustainable,” Elon Musk said during the launch of its long-awaited standard Model 3.
told reporters on a conference call Thursday, adding that the base price doesn't factor in tax incentives or gas savings that may further lower the cost of buying and owning a Tesla."From the beginning, this has been the goal."
"Given that there is a lot happening in Q1, and we are taking a lot of one time charges, there are a lot of challenges getting cars to China and Europe, we do not expect to be profitable. We do think that profitability in Q2 is likely," Musk said. Tesla is also changing the customer shopping experience, allowing customers to try out the car before buying and offering full refunds if a car is returned within seven days or 1,000 miles. It's pushing all sales online and to mobile devices and eliminating or reducing showroom staff as well.
In shifting sales online, Musk said Tesla will be closing some stores and laying off employees, which allows it to save money and lower the price of the car.The company announced in January that it planned to"It is excruciatingly difficult to make this car for $35,000 and still be financially sustainable," he said. He said it will be at least another two to three years before Tesla can produce a cheaper car.
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