Elon Musk rebukes Tesla affordability problem

Elon Musk rebukes Tesla affordability problem

In an interview with CNBC, Elon Musk laid out his argument against the idea that Tesla has an affordability problem.

One of the oddest and most unique criticisms that Tesla receives from skeptics is that its vehicles are far too expensive. And further, despite the automaker’s consistent efforts to make its vehicles increasingly more affordable, this stereotype seems deep-rooted for many consumers. Now, Tesla CEO Elon Musk has addressed this criticism during an interview on CNBC following the shareholder meeting yesterday.

Elon Musk argued against the idea of the Tesla affordability problem in a segment of his interview with David Faber of CNBC. The discussion was held immediately after the shareholder meeting yesterday, and segments have been subsequently posted to Twitter by the broadcaster.

Besides the main argument from Musk that the starting price of both the Model 3 and Model Y now fall below the average car purchase price in the United States, the CEO also proudly pointed out that the entry-level Model 3 is cheaper to own than a similarly priced Toyota Camry; a car well known for its practicality and affordability. Musk’s affordability argument fed into a broader point that Tesla will begin advertising its vehicles to help dispel common myths and consumer concerns.

Luckily for buyers, Tesla is continuing to work to make its vehicles increasingly more affordable, most recently evidenced by the company’s wave of price cuts, but also by rumors of a lower-priced “Model 2” currently in development. With a price tag supposedly below $30,000, the new Tesla model could be the perfect offering for pinnacle affordability, though it remains unclear when the vehicle will become available.

Elon Musk addressed multiple other concerns and ideas fielded by Tesla investors during yesterday’s shareholder meeting, most notably including the idea of advertising, which the automaker now plans to employ. Further, the CEO laid out his economic forecast, noting that troubles in the world market could cause upheaval in the auto industry in the not-too-distant future.

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