$40,000, 200-Mile Electric Car From Tesla?

May 31st, 2013 by Zachary Shahan

Back in early April, we wrote about Elon Musk’s statement that Tesla would manufacture an affordable electric car about half the price of the Tesla Model S by 2017. At the time, questions that popped up were: Which Model S (i.e. how much, exactly)? What kind of range would it get? Is it really going to happen — should we actually trust Elon this time? And, of course, will you please, please just give me one?

OK, don’t laugh at us — can you at least offer us a test drive… in Europe?

The Tesla CEO has revealed more details about the 2017 affordable EV: “In an interview with the Detroit News, Musk said that while having paid off the government green loan was like taking a weight off of his chest, the company could not rest on its laurels. It’s next vehicle, the Model X SUV, has been pushed back a year, and while Tesla sales are strong, there is still a whole lotta debt to deal with. After the Model X though, Tesla wants to launch a 200-mile EV with a starting price of about $40,000, about the same price as the Chevy Volt, though the main competition will be the BMW 3-series. Also, it may cure blindness and walk on water.”

Back in April, Nathan wrote: “As of now, a new Model S ranges between $70,000 and $100,000 before tax credits and rebates (such as the $7,500 federal tax credit and the $2,500 California rebate).” So, the $40,000 number definitely seems reasonable, especially if it’s offering a range of 200 miles!

Tesla has been on a roll with its recent announcements (resulting in quite a nice stock price spike). Last night, it held yet another press conference about a major one related to its Supercharger network. CleanTechnica senior reporter Tina Casey asked Elon about the design of this upcoming, “affordable” model. I was surprised at how much Elon said in response (though, he clearly noted that they were at the early design stage), but I’ll leave reporting on those statements to Tina since she asked the questions. Stay tuned!

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Tags: Tesla, Tesla affordable, Tesla affordable Electric Car, Tesla affordable EV, Tesla Model S

About the Author

Zachary Shahan spends most of his time here on CleanTechnica as the director/chief editor. Otherwise, he's probably enthusiastically fulfilling his duties as the director/editor of Solar Love, EV Obsession, Planetsave, or Bikocity. Zach is recognized globally as a solar energy, electric car, and wind energy expert. If you would like him to speak at a related conference or event, connect with him via social media. You can connect with Zach on any popular social networking site you like. Links to all of his main social media profiles are on ZacharyShahan.com.

josetony

A 200 mile range $40,000 car could be a better bet than the GM Volt. Specially if it has the Model S looks. By the time that this car is ready to hit the streets I think that many overseas companies will be offering the same kind of car probably for a lot less. Tesla should sell a model S version with a 100 mile range for $40,000 right now. They can design a baby version of model S ( at least a foot shorter) and keep improving it until it reaches 200 miles in 2017. But now I understand that they are too busy keeping up with the model S demand. If the more expensive version is selling well, they will be willing to delay the cheaper version for a few years.
- gary
  
  when the car is down in the $20000 dollar mark then thats when it will start to make big changes. to ecomany of united states and the world. the price its at right now only upper class can even think of getting them but 90 % cant touch it.
  hoping it come down in next 5 years to about $20000
  - Bob_Wallace
    
    “The estimated average transaction price for light vehicles in the United States was $31,377 in May 2013″
    
    http://www.jsonline.com/business/average-new-car-price-tops-31000-b9925019z1-209934441.html
    
    Something over a 150 mile range and under $30k should make major changes in what dealers sell. Few people will not be able to use a 150 mile range EV for their normal driving.
josetony

I prefer a $20,000 electric car with a 100 mile range. With that kind of range of the people could do most of their daily driving. Need to go on a long driving trip ? rent a regular combustion engine instead, or a hybrid.
- Bob_Wallace
  
  That would be a Nissan LEAF.
  
  92% of all daily RT commutes are 70 miles or less. That’s LEAF range.
  
  Put others in a 40 electric mile PHEV like the Volt.
  
  78% of all commuters could do their ‘daily’ in a Volt
  7% could do 40 out of 50 miles in a Volt
  5% could do 40 out of 60 miles in a Volt
  
  The last 10% could drive 40 on electricity and the finish in a very efficient ICEV.
J_JamesM

I bet the $40,000, 200-mile Tesla will sell like hotcakes overseas, and in Norway in particular. Their vehicle taxes and gas prices are absolutely enormous in comparison to other countries, and their electricity is pretty cheap.
- Ross
  
  Yes, they’re already number 2 for tesla sales. Apparently the Model S Performance is 1/3rd the price of a BMW M5 in Norway.
John J Sarter

The advances in EV technology in the next 5 to 10 years, combined and integrated with high performance building science, are going to blow your mind and knock your socks off. My advice to people and funds invested in traditional hydrocarbon energy is: DIVEST before you start losing serious ground, for ethical and now financial reasons as well…
Shiggity

The designer who was quoted at 30-40k and the 3 series no longer works for hte company. The car is going to be a BMW 5 series | Mercedes E Class competitor. The 40-65k range is the cream of the crop with the highest gross margins and good volumes.

Tesla is a LUXURY car maker, that 29,999$ starting price car is 2020+.
- Michael J. Davis
  
  on CNBC today musk said it will start at 35,000.00
  
  I think it some where between 30 and 40 pls if you add in gas
  savings its more like 25K especially with gas prices in 2017
Marion Meads

Was really hoping that Tesla would sell the Model X at half the price, which is about $35K before Federal tax credits and state rebates, and begin production soonest. This news is disheartening. I was truly rooting for Tesla but has been disappointed.

If GM is wise, they could grab a big share from Tesla for ranges of 200 miles or more. GM’s Spark EV is down to about $18K for 82 mile range after Fed and State credits/rebates. If GM would have increased its Spark EV range to 200 miles, and add $5K more, they could grab a lot of Tesla buyers waiting for Model X, and GM could do increase the range now if they wish.
- Bob_Wallace
  
  There’s more than enough room in the EV market for everyone. Look at all the companies making ICEVs today. My guess is that they will all be EV manufacturers 20 years from now. A few companies will continue to make ICEVs, largely for special purpose needs.
  
  I’m also guessing that we’ll see major developments in EV batteries by 2017. There are numerous promising approaches in the lab and it takes about two years to get from lab to factory.
  
  Right now a 200 mile range EV is heavy. Look at the BYD e6. A 200 mile range Spark would be a concrete block on wheels.
Marion Meads

I am correct that the production was postponed several times. Tesla told us that they would start production of Model X at end of 2013. Then it was 2014, and then as early as 2015, and now in this article pushed back to 2017. At least you can trace the SEC Form 10-K filing with the SEC that they would begin production in 2014. I am not cooking this up, so bring up your best defense of Tesla

Here’s the quote from: http://wheels.blogs.nytimes.com/2013/03/12/tesla-model-x-production-wont-start-until-late-2014/

“Tesla Motors has confirmed that production of its all-wheel-drive
Model X electric crossover will begin in late 2014, a year later than
the company had originally announced. The revised timing was described
in the company’s Form 10-K filed with the Securities and Exchange Commission last Thursday.

When Tesla first revealed the Model X in February 2012, the company
said production would begin at the end of 2013, with deliveries
following in 2014. Nearly a year later, at the Detroit auto show last
January, Elon Musk,

Tesla’s chief executive, made the first public statement about the
shift in the schedule. Mr. Musk said production of the Model X would
begin in the second half of 2014, according to Reuters.”
- Bob_Wallace
  
  So what is your point? That Tesla was overly optimistic about what they would be able to do?
  
  They missed their target with the Roadster when the company building the transmission delivered a product that didn’t hold up and Tesla had to build it themselves.
  
  Tesla has delivered. I’m sorry that they aren’t delivering on the exact schedule you want, but that’s life.
  - Marion Meads
    
    Do you think that it would be good for a company to keep postponing their delivery date?
    - Bob_Wallace
      
      Better if they deliver sooner than they thought they could. But, in this case, it looks like “as early as 2015″ is 2017.
      - Otis11
        
        No, no Bob – to my understanding the Model X is still on the Table for next year, it’s the “$40K Model” that’s slotted fro 2017.
      - Bob_Wallace
        
        Things are in a state of confusion….
        
        Here’s what the Tesla site says about the X
        
        “Deliveries will begin in 2014 and priced comparable to a similarly equipped Model S.”
        
        So I’d say that the X is coming out next year and will not be “57%” of the cost of the S.
        
        The “$40k” Tesla Model ? was, as far as I know, always going to trail the X by “a couple of years”. And that’s what the article at the top of the page is saying.
        
        Seems like someone has managed to merge the X and the ? and gotten themselves upset. Tempest, meet Teapot.
      - J_JamesM
        
        And how! Is it really so hard to keep track of three models of car? Particularly when the article very clearly distinguishes them?
        
        C’mon people. Read carefully before you gripe.
      - Otis11
        
        Yeah – you got it.
        
        I was reading this string of responses and it wasn’t clear y’all were making the distinction so thought I’d interject.
    - ryan
      
      Yeah, meet a date just to meet a date. How about delay the product until it is ready and blow away peoples’ expectations with something that is way better than they even imagined?
- Justin
  
  Model X is an SUV based on the Model S chassis and is priced accordingly. It has been delayed a year to enable Tesla to focus on scaling up Model S production to meet greater than expected demand. The model X is NOT the affordably priced Gen III aka bluestar that will be akin to a smaller Model S with a 200 mile range that is targeting a 35k price and is 3-5 years away. Gen III is relying on incremental increases in battery technology to enable profitability at a reasonable price unlike current affordable EVs which are selling at a loss.
Marion Meads

IIRC, it was posted here that the Model X would be half of the current Model S. Also that the release is as early as 2015. Now the price has gone up again, and the time pushed back by 2017. Someone here is lying big time or imply having an excuse of not remembering properly.
- Bob_Wallace
  
  The lowest priced Model S is $69,900. $40k is 57% of $69.9k. That’s
  not a large distance from half.
  
  “(A)s early as 2015″ does not mean the same thing as “in 2015″.
  
  “Someone here is lying big time or imply having an excuse of not remembering properly.”
  
  Or someone is being a doofus….
  - Marion Meads
    
    Having dementia lately?
    - Bob_Wallace
      
      Perhaps.
      
      Perhaps you could explain to me how 57% is not close to 50% and how “as early as” means the same thing as “is”.
      
      One of us seems to be having a cranial disturbance….
      - Marion Meads
        
        if you have studied statistics at all, lies, reality and statistics, you should know what statistically significant difference is.
      - Bob_Wallace
        
        I’ve taught statistics at the university level.
        
        I’m also able to discern the difference between blog talk and careful financial analysis.
      - Marion Meads
        
        so you admit playing the numbers to make the difference as small as possible to support Tesla’s statement of half the price when actually it is not.
      - Marion Meads
        
        I’ve championed at Math and Stat competitions. I am a university terror teacher’s worst nightmare when it comes to math and stat even if they were known to only give a highest of B grade given. I’ve teached stat part time to grad students at university graduate studies. My lowest grade in Math and Stat have been A+ when I was undergrad and grad student.
      - Ronald Brak
        
        You’re as skilled as Sheldon Cooper.
      - LB Gates
        
        Had you teached it or had you taught it? Are you sure it was Stat and not English? Perhaps you were their worst nightmare due to your ego and it was unrelated to your scholastics entirely? Just a thought…
      - Marion Meads
        
        In simple majority, 51% and over wins all the time.
        
        The exact difference between 50% and 57% is huge, exactly 14% difference. I can’t believe you passed math.
      - mds
        
        Marion,
        
        Take a chill pill. Buy a vehicle from somebody else if you don’t like Tesla or Musk. Get over it!
        
        I think what Tesla has accomplished is amazing. Musk is correct though, they cannot rest on their laurels. The race for this market will get tougher.
      - mds
        
        btw did you read what Elon said here about the Model X:
        “Also, it may cure blindness and walk on water.”
        I think you can take that one to the bank!