Tesla Should Not Have Lowered the Price of Autopilot Says Musk

Tesla Model Y SUV to be unveiled at 8.30 am tomorrow Heres what is expected

Tesla Model Y teaser. Image Tesla

One of the biggest challenges with Tesla cars reaching the masses has been their high price.

Elon Musk, CEO of Tesla has shed light on state around the ramp-up in production of the company's new base Model 3. There will be no price increase to the $35,000 Model 3. A few stores in high visibility locations that were closed due to low throughput will be reopened, but with a smaller Tesla crew. The company expects to build closer to 400,000 cars this year. The Company now has approximately 378 stores and service centers operating worldwide.

"As a result, Tesla will need to raise vehicle prices by about 3 percent on average worldwide".

The settlement between Musk, Tesla and the SEC resolved an SEC lawsuit over claims Musk made on Twitter in August that he had "funding secured" to take Tesla private at US$420 per share.

The electric auto and energy company based in Palo Alto is worth $49 billion. So, Tesla has designed newer strategies to meet its expectations. The company says it still plans to offer buyers the ability to return purchased vehicles at no cost after a seven-day or 1,000 mile test drive.

"I want to be clear", Musk said. The Shanghai Gigafactory is expected to produce five hundred thousand entry-level model 3's and Y's by the end of 2019.

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Musk probably realized that he was locked into long-term leases on the stores that he would have to pay regardless of whether they were closed, Ramsey said.

Musk stated that in Q1, there are numerous challenges to get cars to Europe and China and so, the company does not expect to make profits in Q1.

Tesla shares finished Tuesday down 2.6 percent at $283.36 on the Nasdaq.

"Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have chose to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months", said Tesla in a blog post. He also said that Autopilot prices would "revert to normal on Monday" (via Business Insider). The pricing will start at $35,000 and as per the company; it is shifting the sales online.

"This is the only way to achieve the savings for this vehicle and be financially sustainable", Musk told reporters during a conference call announcing the change. It is expected that the presentation of the model will also take place during this year, but the exact timing at the moment the company is not voiced.

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