Tesla Should Not Have Lowered the Price of Autopilot Says Musk

Galtero Lara
Marcha 14, 2019

Tesla impressively expects Model Y production and demand to trend higher than the Model 3 - and the Model 3 is the electric-car maker's highest-volume vehicle yet.

Tesla is set to unveil the Model Y on March 14 at the Los Angeles Design Studio. Musk also said that Tesla was still closing some stores, despite whipsawing reports of closures, freezes, and stores remaining open, over the last two weeks.

In other words, this will be meaningfully smaller and cheaper than Tesla's current SUV: the Model X.

According to a series of tweets from Musk himself, the Model Y will be an SUV "about 10% bigger than Model 3".

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FILE PHOTO: SpaceX founder Elon Musk looks on at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, U.S., March 2, 2019.

Tesla recently announced a handful of updates dedicated to increasing charging speeds for all its vehicles, including the reveal of its V3 Supercharger, an updated charging method that Tesla says will "ultimately cut the amount of time customers spend charging by an average of 50%, as modeled on our fleet data".

Daniel Sparks owns shares of Tesla. There will be no price increase to the $35,000 Model 3. The Model Y will have a slightly shorter range than the Model 3 despite the identical battery. Tesla says it will accelerate V3 Supercharger installation in "Q2 and Q3", so you might see one sooner than you think. While the electric-car maker has always planned to lower Model 3 prices in order to hit its target $35,000 starting price for the vehicle, aggressive price cuts to all of its models and a workforce reduction announced earlier this year have some investors anxious that demand isn't living up to the company's expectations. In a shareholder's letter from Q4 of 2018, Musk says the company would be gearing up for Model Y production and would reach volume production "by the end of 2020, most likely at Gigafactory 1". According to Musk, the price of Autopilot will also "revert to normal" on Monday.

Stated simply, Tesla has now gone back on all of the major business model changes it made just about two weeks ago, further exposing a company that can only be described as in the midst of anarchy.

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