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Elon Musk: $35,000 – 200 Mile Tesla Coming In 3-4 Years. Model S Refresh Around 2015, New Model In 2018 (w/video)

11 months ago by Jay Cole 23

Tesla Maps Out Their Plans For The Next 4 Years

Tesla Maps Out Their Plans For The Next 4 Years

Tesla Motors just wrapped their 2013 Annual Shareholder Meeting in Mountain View, California on Tuesday night…and with CEO Elon Musk doing a presentation, fielding some Q & A, and a company now flush with cash after a recent stock offering, you just knew there would be some flashy announcements and a light-hearted atmosphere.

Tesla CEO Musk Talks About...Well, Everything At 2013 Annual Shareholder Meeting On June 4th, 2013

Casual T-Shirt Tuesday Will Not Be Interupted By Pesky Annual Shareholder Meeting!

The CEO started out with some light hearted banter about why the Model S only achieved 99 out of 100 on the electric sedan’s very high profile, near perfect, Consumers Report rating.  That result was actually tied for the all-time best rating with the Lexus LS 460L in 2007.

(For the record, some questions about the availability of the rapid charging infrastructure perhaps limited the freedom of Model S owners stole that last point)

Of more interest was an update on the upcoming, less expensive 3rd generation offering.

On that subject Mr. Musk noted it would basically be“a smaller version of the Model S at half the price.”  The Model S, with the deletion of the 40 kWh entry level offering, currently starts at $69,900 (before incentives), meaning this future car will have a price around $35,000.

The Tesla founder notes the following tidbits on the Gen III car:

  • now expects the car to arrive in 3-4 years (which is later than the original estimate, but a sooner arrival than the last update/tweet when the car’s arrival was pegged in the 2017-2018 timeframe)
  • 200 miles of range (in fact Tesla notes that all their cars will now always have at least 200 miles of range)
  • working with Panasonic with new cell electrochemistry to make affordable 200+ mile ranges happen
  • “strong family resemblance” to the Model S
  • use of ultra-capacitors that “the public doesn’t know about”
  • all cars to utilize supercharge
Tesla Does Some Forecasting For 2013

Tesla Does Some Forecasting For 2013

Other notes of interest from the meeting…which we have video embed below if you care to watch: (and you should, as it is fairly entertaining from around the 7 minute mark when Mr. Musk takes the stage by mocking ‘the shorts’)

  • Musk notes that if you add up all the revenue from the Model S in the first quarter, it is greater than all the other plug-in cars combined
  • Future growth on the Model Splatform?  Model X and “potentially will do some other products on that platform”
  • Tesla raised “more money than they think they need” after last financing round – $760 million in cash after repaying government loans on hand.  Will use funds as an insurance blanket against unforeseen market conditions
  • Model S demand in US estimated at 15,000/year
  • Europe deliveries of Model S will “be on the boat” in June, arrive in July
  • Asian deliveries in Q4
  • Musk sees worldwide demand for Model S at 40,000 (although company ‘notes’ display 30,000).  A big portion of future sales will be generated virally
  • Boutique stores to increase by 50%, or 34 to 50 this year
  • Service centers to increase to “over 75,” multiples service centers in some areas such as Los Angeles
  • Model X to still be available “late 2014,” will go after 7 passenger seating/minivan market
Tesla Model X To Get "Into Customer Hands" By The End Of 2014

Tesla Model X To Get “Into Customer Hands” By The End Of 2014

From the Q&A Mr. Musk also had some interesting comments:

“Any plans to add noise to the motor?” – from some old lady

-challenge is to avoid noise pollution, and to have proximity sensors to direct a pleasant noise in the direction of someone who walking.  So it is the least amount of noise, going in the direction it needs to go

“Are you having fun yet?” – are there any serious/normal people asking question?

- “I’m having a lot more fun these days! <laughs>” Past achievements are more enjoyable in recollection, but were extremely stressful at the time.  But there is a steady improvemnt now

“Cars in the category of Model S tend to have a 6 year refresh cycle.  Sales typically peak in 2-3 years, so what the life cycle of the Model S? Where could sales peak?” – sharehold (who doesn’t own a are)

- We don’t have an existing service and sales infrastructure. I think peak sales will probably be in year 3 or 4, because it will take us a while to fully build out sales and service of the Model S…we want to make sure the car is available worldwide.  ”In terms of when there will be a significant redesign of the Model S it is probably in the 6th or 7th year…with a mild refresh in the 3-4 year point”

Also be sure to check out a nice rant from the CEO on Tesla’s interactions with state franchise associations at around the 50 minute mark:

…big hat tip to Josh Bryant on the video linkage!

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23 responses to "Elon Musk: $35,000 – 200 Mile Tesla Coming In 3-4 Years. Model S Refresh Around 2015, New Model In 2018 (w/video)"

  1. Taser54 says:

    EEstor on the Gen 3. Book it. Shhh!

    1. evnow says:

      Yes, that is why the znn stock went down today by 5%.

  2. Exciting times for sure.

  3. Sam says:

    No wonder Nissan killed the Infinity EV. I wonder if Tesla has any other auto makers scrambling.

  4. Brian says:

    2017 will be a big year!

    1. kdawg says:

      Yes, I think that is the year I will start looking at selling my Volt and possibly moving to a full BEV. It all depends on what’s out there and for what price.

      1. IDK says:

        I wouldn’t be surprised if the the Tesla Gen 3 (Blue Star) comes out slightly before 2016. Tesla isn’t like any other automobile company we have ever seen. They move quickly and make business decisions like no other company (in their field). Take for example the Super Charger Network. My guess is they will start to take deposits for the Gen 3 (Blue Star) sometime next year.

  5. Schmeltz says:

    Nice presentation. Those Q&A’s are probably always a potentially stressful thing for a CEO to take on…you never know what you are going to be asked. I thought Elon did well with the whole thing.

    One thing I learned was the supercharging stations are around $150 -$300,000 a piece. I thought they would cost a lot more than that. At that price Tesla could conceivably cover a lot of locations in the U.S. Makes more sense to me than it did before.

    There was a lot of stuff to chew on there. Good material for upcoming Inside EV’s posts!

    1. Jay Cole says:

      Practically killed us putting that out (as we like to break news as it happen); took until 2:30 am last night (eastern) to sit through the conference, write, embed, and then publish this piece out, so I expect we have Tesla-overload at the moment, might be a day or so on any follow-ups, (=

      …I’d also like to take a moment to suggest that Tesla move its HQ to New York or Detroit, (=

      1. Schmeltz says:

        Yeah that presentation alone is probably worth about 20 separate articles here on this site—lol! Looking forward to them!

      2. Brian says:

        You may have Tesla-overload, but I am so amped up right now! I can’t wait to see their plan unfold! I will definitely be one of the first in line for the BlueStar…

    2. Anthony says:

      It really puts into context how much the Supercharger network will cost to build, as well as to maintain (low rents, low utility bills, using battery storage to avoid large peak demand charges). If they build 250 stations worldwide (125 or so in the US, 125 in EU/Asia), that’s “only” 75M, which is 10% of the cash they have left over after paying off the government.

  6. Nelson says:

    Tesla raised “more money than they think they need” after last financing round – $760 million in cash after repaying government loans on hand. Will use funds as an insurance blanket against unforeseen market conditions
    Model S demand in US estimated at 15,000/year
    Europe deliveries of Model S will “be on the boat” in June, arrive in July

    I hope Elon is smart enough get transport insurance the Model S being delivered to Europe.
    Full coverage for the following:
    Theft (while docked or at sea)
    Fire (while docked or at sea)
    Damage due to natural and un-natural catastrophes (storms, super storms, malicious acts)
    Point to point coverage (from manufacturing plant to customer)

    Don’t make the same mistakes Fisker made with lack of insurance coverage.

    NPNS!
    Volt#671

    1. Michael says:

      I believe Fisker’s issue was not lack of insurance, but whether they cars were in transport. Fisker has insurance for transport, but the insurance companies, possibly correct, claim was the cars were just parked at the port as storage, not destined for anywhere at the time. If that was the case, their claim could be denied.

  7. IDK says:

    I like the price point for the Gen 3 Tesla (Blue Star) before incentives…if there are any. I also noticed he mentioned he didn’t think the driver-less tech would make it in the car by the 3-4 year time frame. Adds to the Google debate/rumors of a partnership between the two companies (Google + Tesla). He also showed some true passion when his eyes got watery/teary when talking about Texas and not being able to sell there and couple other states. Best Q and A I have seen yet.

  8. David Murray says:

    Is it just me or did it look like Elon was losing composure when asked about the loss in Texas. I’ve never seen him so emotional about something. He must be taking it very personally.

    1. h_corey says:

      Yes, I thought I saw that as well. Choking back something.. tears?

    2. Josh says:

      I have only seen that reaction from Musk one other time. It happened in an interview when asked about Neil Armstrong not approving of SpaceX’s attempt to commercialize space.

    3. Anthony says:

      When you’re on a mission to change the world for the better – its very personal.

  9. kdawg says:

    It would have been cooler if he had worn his Iron Man suit.

  10. Willie says:

    Nice looking car, I hope he can make one for the working man/woman, Hope it comes with heated seats and DRL’s and a red rear fog light like the one’s used in Europe ( F-1type ) would be nice. Good Luck on your venture.

  11. Night Raider says:

    I want one . . . . . . . NOW!

    :-)

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