While the public can now lease a Tesla Model Y for $499 per month, it is still pricey for most Americans. And this is what CEO Elon Musk seeks to fix.

"The thing that bugs me the most is that our cars are not affordable enough. We need to fix that," the CEO said during the second-quarter earnings call. According to Clean Technica, Musk aims to maximize car sales growth while making the Tesla cars "as affordable as possible."

This was Elon's response to how he finds the balance between Tesla's mission to fast-track the "world's transition to sustainable energy" and his goal to lead the industry.

While most CEOs are revenue driven, Elon considers if the public can afford his products. And yes, even Tesla's cheapest car, the Model 3, is still quite costly, even with the recent price cut.

Since 2003, Tesla believed people do not need to compromise the experience of driving electric cars. It has proven that electric vehicles can be better and more fun to drive than gasoline vehicles. It also aims to lead the world "towards a zero-emission future."

Is it possible to offer Tesla to the masses?

Yes, it is possible. After all, Tesla has already switched its focus from the rich to the middle class, and it would not make much difference it the company would stretch further to reach the general masses.

However, while credit and insurance are still being considered, shelling out $40,000 for a car is still a huge decision to make, particularly for those who are barely earning to live. Recently, the coronavirus pandemic has crippled the economy and led millions of Americans to lose their jobs; they even used their credits to survive.

Targeting the lower-income bracket would significantly boost Tesla's sales as these families would start to consider owning a Tesla model. After all, lower-income up to upper-middle-class make up the huge majority of the population. 

This would make everyone interested in Tesla, and soon it could compete against Fords, Toyotas, and other economy cars. However, creating affordable electric vehicles would be a huge challenge, particularly with batteries, which vital in Tesla's product development.

What to consider when targeting low-income market

If Tesla is seriously considering including low-income families in its market, it must consider that paying for the car may mean they need to sacrifice their house rent. Earning about $22,000 a year is not much, especially when there are kids in the family.

While it is not Tesla's responsibility to help the poor, a company that wants everyone to access its electric vehicles would greatly benefit if it successfully resolved the costing challenge.

Not only will its sales increase, but also help Tesla to successfully meet its goal to have a world run by sustainable energy. And with a CEO like Elon Musk who leads the company with his heart, it is not far from reality. After all, offering a car lease is a good start.

Read also: Elon Musk-Backed AI Company Launches New Tool that Writes Naturally Like Humans

ⓒ 2024 TECHTIMES.com All rights reserved. Do not reproduce without permission.
Join the Discussion