Tesla Motors Growth: Tesla Motors Inc (NASDAQ:TSLA) has been all the rage as of late. Along with the many people who are keeping close tabs on the company because of the vehicles it manufacturers, investors have become obsessed with its fast growth.
If you want to learn more about what is going on at Tesla, take the time to check out just a few of the many articles we have published on the company over the last couple days:
While there is no reason to curb your enthusiasm related to Tesla Motors Inc (NASDAQ:TSLA) and its recent growth, there is a major roadblock that the company, headed by CEO Elon Musk, will be dealing with moving forward: the cost of its vehicles.
It goes without saying that most people in the market for a new car are never going to consider buying a Tesla. Simply put, the price alone is enough to scare the majority of buyers away.
While Tesla Motors Inc (NASDAQ:TSLA) vehicles will never be as affordable as some, the price is keeping away the masses at the present time.
This doesn’t mean the company should look for ways to sell its vehicles at a basement bargain price. After all, this is not what Tesla Motors is all about. That being said, it needs to look for ways to at least make its starting price point more affordable.
Tesla Motors Inc (NASDAQ:TSLA) would be well served to offer a vehicle in the $30k to $40k range.
Let’s take a look at an excerpt from Automotive News to get a better idea of where the trouble comes into play:
“At the 2009 Frankfurt auto show, Musk told Automotive News that the Model S would sell for $49,900.
Tesla created impressive range in the Model S, but only by loading in a monster battery pack that pushed the price into luxury territory. The top-level model, with its 85-kWh battery and 265-mile range, starts at $79,900. A performance version begins at $94,900. Tesla also offers a 60-kWh Model S with a 208-mile range and a $69,900 base price. (Prices exclude the $7,500 federal tax credit.)”
As you can see, there is a big difference between $49,9000 and $69,900. Even more concerning is the fact that Musk quoted a lower price when the vehicle was rolled out.
Things are looking up for Tesla Motors Inc (NASDAQ:TSLA) right now, but a lower starting price may be what the company needs in order to keep its momentum and be taken more seriously by a larger group of consumers.
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