- Jul 31, 2021
Tesla CEO Elon Musk confirms that Tesla will likely stop selling cars to consumers at a reasonable price.
Tesla plans to involve perfecting the full self-driving capability of its electric car up to a point where almost no human intervention is required. This improved feature will cause Tesla cars to appreciate, thus raising its price to a super high level.
Musk states that for any Tesla car that is bought by consumers, they should consider them as an “appreciating asset” due to its potential to be used to generate revenue in the future. As after the technological problems are solved for the self-driving cars, Tesla will stop selling them at the current prices, making these cars as assets.
The information was revealed via a tweet exchange between Elon Musk himself and another Twitter account known as Disruption Research. Tesla has endured heavy losses in the past. But this week has been a happy week for the carmaker, Tesla’s stock rose as expected following the news, gaining 7 percent after falling 35 percent since early 2019 when it reported slower than expected sales.
Tesla has benefited from a full quarter selling the Model 3, its most affordable vehicle, in Europe and China. The Model 3 previously launched for US buyers in 2018, after taking reservations for the years.
Moreover, Tesla will eventually shift its focus from selling electric cars to operating a fleet of them as taxis. This will push the company in direct competition with Uber, which is already losing money as we speak and are betting all of its chips on perfecting self-driving technology. However, the company seems to be prepared not to let any inch slip.