Tesla, ’s plan for affordable cars takes page from Detroit rivals
Elon Musk’s new plan for Tesla involves using current product lines to create more affordable vehicles, similar to the strategy of traditional automakers like Ford and General Motors. This shift in strategy led to the shelving of plans for a new ,000 model and a focus on producing “more affordable” models using existing platforms. Some analysts expect Tesla to offer stripped-down versions of the Model 3 and Y at lower costs. The change in strategy has sparked a stock rise and drawn praise from investors, but also raised concerns about execution risk and the impact on Tesla’s valuation as it shifts towards being seen more as an automaker than a tech company.