Tesla CEO Elon Musk this week said the company plans to develop a new, next-generation electric vehicle that “will probably be about half the cost of the 3 and Y platform.” The news came as something of a surprise and requires some explanation.
What he said, what he didn’t say, and who he said it to make the news potentially confusing.
Cost Isn’t Price
First things first: This doesn’t mean there’s a $30,000 Tesla coming anytime soon. It doesn’t rule one out, but it’s unlikely for several reasons.
Musk said the cost of the platform would be lower. That doesn’t mean the price of the car will be that low. The news is being read by car shoppers, who are concerned with the sticker prices of new cars. But Musk was speaking to investors, who are concerned with the cash flow of the company that builds them.
He was almost …