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> I mean, he could have started with a low performance, average-looking, electric, family sedan. There are other reasons Tesla started with a high-end model. B
by ShannonAlther 9y ago
> I mean, he could have started with a low performance, average-looking, electric, family sedan.
There are other reasons Tesla started with a high-end model. Because building the cars was going to take a lot of R&D, Tesla supported the cost by starting with fancy sports cars, which have a better ROI, and then used the technology to manufacture less pricey cars later on.
Source (ctrl + f "the business plan"): http://waitbutwhy.com/2015/06/how-tesla-will-change-your-life.html#part3 http://waitbutwhy.com/2015/06/how-tesla-will-change-your-lif...
- martalist 9y ago> There are other reasons Tesla started with a high-end model. True, I didn't mean to imply it was the only reason - more that it's good example of appealing to human self-interest to fix a larger problem.
- thewhitetulip 9y agoIt is called selling! Nobody would have bothered to buy a electric car if it was launched as "family mass produced car", the reason why people are are raving about Tesla is because their cars are now a status symbol or a lifestyle symbol, just like the iPhone, Musk did his selling well. When you are building a company, being able to sell a product is more important than just building a world class product.