Report: Tesla’s Elon Musk hints at a more affordable model than the Model S, to cost around $40k

Word in the pipeline from Bloomberg is that Tesla Motors may be aiming to produce a more affordable model to raise the bar again for EVs. According to the report, Tesla’s great success has allowed the brand’s CEO, Elon Musk, to repay the U.S. Energy Department’s start-up loan. Resultantly, because things are going so well, Musk wants to expand the Tesla lineup.

Musk hinted at his interest in an affordable Tesla model during some interviews regarding Tesla Motor Company’s current financial status, mainly in the stock department. He apparently expressed interest in a model “less expensive than the Model S, and nicer than the Nissan Leaf.”

“With the Model S, you have a compelling car that’s too expensive for most people,” Musk said. “And you have the Leaf, which is cheap, but it’s not great. What the world really needs is a great, affordable electric car. I’m not going to let anything go, no matter what people offer, until I complete that mission.”

The car is said to be deep in the research and development phase, to the point where it doesn’t even have a name. Though a price below $40,000 is projected and will be ready within three to four years. Musk also divulged that the new EV will have a range of roughly 200 miles on one charge.

– By: Chris Chin

Source: Bloomberg