Tesla Model 3

Tesla: Massive Success With Model 3 vs Making Niche Cars

Today as I scanning the Tesla discussions in forums and groups I noticed an interesting opinion, which claimed that Tesla will have more success with niche cars vs going mass market with Model 3, despite Model 3's success. Here is the loginc behind this claim and how Tesla CEO meets at least one of his goals no matter what.

One opinion that I read about Tesla's future goes about like this.

"Even though I believe Tesla will have massive success with Model 3, I think it has a better chance of being competitive if it keeps making niche cars instead of mainstream cars in the long term. I think the established car companies will own the market for EVs in the sub $50K market. I think it's Shell who started adding charging stations to their gas stations. They are not just going to lay down and die. Besides, people who buy an EV for daily driving will probably not pay tens of thousands extra for a Tesla just because of superchargers. It was not even a selling point for me when I decided to get a Model S."

The second opinion explain why no matter what Elon Musk meets at least one of his two goals.

"Elon is using Tesla as much to speed up the adoption of electric cars as he is to make money as an automaker. If other manufacturers produce sufficient quantity of quality affordable EVs, one of his goals will be met. I would agree then Tesla can go back to making a great Model S, Model X, variants of each and a new Roadster. Gives them plenty of great products in a niche."

Now that almost all of the major automakers have revealed or announced their plans about electric cars Tesla obviously will have some advantages and disadvantages when more EVs arrive in the market. What do you think Tesla should do to stay competitive when more companies make more electric cars and EV become what ICE cars are today: widespread and rather affordable.

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To date, Tesla has not met pre-production targets for the Type-3, not even close.