Tesla as a Mass-Market Car
The Model X is a bridge to the Model 3 mass-market vehicle. Tesla could have remained a small-volume electric-car company, continuing to sell all the Model S sedans it builds, banking $100,000 or more for most cars and leveraging moderate success into eventual profits.
But that would have made it the electric Ferrari. Musk wants to change the world, and his visions entail getting gas-burning cars off the road in significant numbers.
To do that, he needs a mass-market car, but he also needs to expand his current product line to get more money flowing through Tesla.
Enter the Model X, which should only account for a few thousand sales in 2015, but that in a few years could surpass the Model S in deliveries. Additionally, building the Model S and the Model X simultaneously will help Tesla develop the manufacturing expertise to expand far beyond its current production scale of about 55,000 vehicles per year. Musk wants to build 500,000 annually by 2020.
I’m talking a lot about Tesla and electric cars at the moment, but it’s an exciting area. I’m looking forward to the Model 3: a mass-market Tesla is a very exciting concept.