SAN FRANCISCO/AUSTIN, Texas - Elon Musk's new plan to use current product lines as the basis for new affordable vehicles — rather than springing for all-new models — follows the playbook of Tesla's old-school Detroit rivals, as some Tesla investors and analysts see it.
The announcement sparked a double-digit stock rise and drew widespread praise from investors. Some analysts expect Tesla to offer basic versions of the Model 3 and Y, which currently start at about $39,000 and $43,000. Tesla said the change would allow the company to launch low-cost vehicles swiftly but would result in smaller cost reduction than had been expected and modest volume growth."We see it as more likely that Tesla will attempt to launch stripped-down versions of the Model 3 and Y as lower-cost models, however we are unclear on how much cost Tesla can realistically take out," Bernstein analyst Toni Sacconaghi said in a report.
"By traditional, legacy car guy standards that Cybertruck ramp is a crawl," said James Womack, a former research director at the Massachusetts Institute of Technology. He co-authored a 1990 book on Toyota's lean production philosophy and methods and said it was long overdue for Tesla to act like a legacy car maker when it came to launching new vehicles on time.
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