Like many car companies, Tesla Motors Inc (NASDAQ:TSLA) is priced entirely too high for the majority of consumers. While there are a lot of people who love the company and what it stands for, they simply cannot afford one of its vehicles at the present time.
The good thing is this: CEO Elon Musk is well aware of this. He knows that a growing number of people want to purchase a Tesla, but are unable to pull the trigger because of the high price tag. He is also aware that many of these same consumers have been waiting for an announcement regarding a cheaper vehicle for quite some time.
Has the time finally come for Tesla Motors Inc (NASDAQ:TSLA) to offer something more affordable? It appears that the answer is yes.
There is hope that Tesla will launch a smaller, more affordable sedan in late 2016. According to Musk, the vehicle will have a range of a minimum of 200 miles and will be priced at roughly “half” of the current Model S.
Would this be enough to satisfy those who want to purchase a Tesla Motors Inc (NASDAQ:TSLA)? While nobody will know the real answer until the car is actually released to the public, it is safe to say that this is a big change that is sure to excite a lot of people.
Here is just a small portion of what Musk had to say about this potential vehicle:
“A significant improvement in technology is needed to have a compelling affordable electric car. To be compelling, it must have a useful range of 200 miles.”
In other words, Tesla Motors Inc (NASDAQ:TSLA) has a long way to go before it is able to offer this type of electric car. The key word in this quote is “compelling.” Musk is not going to push a cheaper vehicle to market just to do so. Instead, he wants the vehicle to be compelling, which in his mind means having a range of at least 200 miles.
Although 2016 may sound like a long time from now, you can be rest assured that Tesla Motors Inc (NASDAQ:TSLA) is working hard to make the dream of a cheaper electric vehicle a reality.