"Teslas are not affordable": Elon Musk flags new, cheaper hatchback that would take fight to Toyota Corolla Hybrid

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Elon Musk says EVs cost too much.
Andrew Chesterton
Contributing Journalist
28 Jul 2020
2 min read

If you think the the $73,900 starting price for the Tesla Model 3 in Australia - the brand's cheapest offering here - is too expensive, you're not alone.

In fact, even Elon Musk has begun blasting the affordability, of lack there of, of Tesla products, vowing to "fix that" on a recent earnings call with investors.

"It is important to make the car affordable. Like the thing that bugs me the most about where we are right now is that our cars are not affordable enough. We need to fix that," he said.

Read More: New Tesla Model 3 2020 pricing and specs detailed: LCT changes lower cost of electric car

"We want to be slightly positive and maximise growth, and make the cars as affordable as possible.”

But how do you fix it? The solution, it seems, is to launch a new Tesla Model 2 - one that will likely be designed and built in Germany - that would take the shape of a "European-style hatchback".

Like most Tesla news, that last bit came directly from a Tweet from Musk, who replied to a fan asking about a hatchback with: "Probably a good one to design and engineer in Germany."

Either way, Musk appears determined to lower the cost of entry to a Tesla vehicle - whether with cheaper Model 3s or an all-new Model 2 - which can only be good news for the brand's fans around the world.

Andrew Chesterton
Contributing Journalist
Andrew Chesterton should probably hate cars. From his hail-damaged Camira that looked like it had spent a hard life parked at the end of Tiger Woods' personal driving range, to the Nissan Pulsar Reebok that shook like it was possessed by a particularly mean-spirited demon every time he dared push past 40km/h, his personal car history isn't exactly littered with gold. But that seemingly endless procession of rust-savaged hate machines taught him something even more important; that cars are more than a collection of nuts, bolts and petrol. They're your ticket to freedom, a way to unlock incredible experiences, rolling invitations to incredible adventures. They have soul. And so, somehow, the car bug still bit. And it bit hard. When "Chesto" started his journalism career with News Ltd's Sunday and Daily Telegraph newspapers, he covered just about everything, from business to real estate, courts to crime, before settling into state political reporting at NSW Parliament House. But the automotive world's siren song soon sounded again, and he begged anyone who would listen for the opportunity to write about cars. Eventually they listened, and his career since has seen him filing car news, reviews and features for TopGear, Wheels, Motor and, of course, CarsGuide, as well as many, many others. More than a decade later, and the car bug is yet to relinquish its toothy grip. And if you ask Chesto, he thinks it never will.
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