Tesla, a leading manufacturer of electric vehicles, is going to cut staff by 7%, as announced on January 18, 2019. The reason is Elon Musk’s aim to create affordable electric cars.
Tesla EVs are still too expensive for most people, and the carmaker wants to make its cars as affordable as vehicles with ICEs.
Reducing of battery prices does not influence the cost of electric cars
Tesla develops popular and technological electric vehicles. The leading automotive brands seek to outperform Tesla’s results. Cities worldwide refuse to use fossil fuels for public transport. Battery factories are built, and governments decide how many conventional vehicles with internal combustion engines should be on the roads.
Electric cars still remain unaffordable for many people, despite the fact that batteries for them become more capacious and cheaper.
In their wish to beat Tesla, the premium brands, such as Audi, BMW, Jaguar, Porsche, design and produce premium long-range all-electric models, which are great, but can be bought by only wealthy customers.
The rest have to be satisfied with small electric cars with little power reserve or to buy used vehicles.
The Jaguar I-Pace, for instance, costs from $69,500 (MSRP), Tesla Model X (pictured above) – from $84,000, Porsche Taycan – from $92,000, the Audi e-tron ‘s price starts at $74,800.
So, Mr. Musk is right. Affordability of electric vehicles is a complex and high priority task.