Future of personal automobiles is electric cars
While the whole world knows the future of personal automobiles is electric cars and even though people would be willing to change to eco-friendlier electric cars, the soaring costs of such cars put most people away from the change. Tesla has been the undisputed market pioneers in the electric automobile industry in the United States and the rest of the world.
Though Tesla’s cars have originally been on the pricier side, the company has been trying to find out ways to reduce the cost of cars. Tesla has already launched models such as the Model 3 which is sold at about $35,000.
However, if $35,000 is still on the higher price range, not to worry as Elon Musk, Tesla’s CEO has stated that more economic models are ought to be launched in a couple of years. Exactly how economical it will get is not disclosed yet.
Cost affordability is the inhibitor for people buying electric cars
Whilst there are stark reports in end of 2018 that demand for Tesla’s Model 3 is very low, Musk disagrees saying “The demand of Tesla Model 3 is incredibly high, however, the inhibitor is cost affordability for customers.” He further explained that “with price cuts to Tesla cars there will definitely be more buyers.”
Tesla to rely on their offset manufacturing in Europe and China
The company’s manufacturing costs in their Californian facility has been bursting seams with very little cost cuts option in the United States and therefore Tesla is relying on their manufacturing in Europe and China offsets to bring about lower cost alternatives.
With increased awareness about environmental sustainability and growing technology in the field of electric cars as well as competitors, Tesla’s cost cuts will provide it with an extra advantage in the electric automobile market.
