Elon Musk has announced plans to build an affordable and easy-to-use electric car to compete with Tesla Motors’ Model 3.
The announcement comes as Musk prepares to unveil a new fleet of electric vehicles on Monday at the world’s largest electric auto show in Detroit.
The electric car maker, which Musk co-founded with the late Steve Jobs, is making plans to produce more than 10,000 Model 3s annually by 2021, with a total of about 400,000 cars in production, Musk said on Monday.
It will be the first car in history that can be built and driven by humans at a price point that is cheaper than a Model S, Tesla CEO Elon Musk said.
Musk said the company would have a $3,000 price point for a Model 3, with the rest of the cars priced from $35,000 to $80,000, but that cost could increase to $100,000 for the Model S. He said the goal was to start shipping the first vehicles to customers at the end of 2020.
“Our goal is to build a fleet that is affordable and available to the average consumer,” he said.
“I think this is a good start.”
The Tesla Model S sedan, which sells for about $75,000.
Tesla CEO Elon Trump has said that the company is planning to build more than 1,000 electric cars by 2021.
Musk said he would not release specific numbers for Model 3 deliveries.
He said the Model 3 will not be an incremental upgrade to the Model 2, as it is the first time the company has used the same platform.
“The Model 3 is the next generation of electric cars.
It will be more powerful than anything you’ve ever seen,” he told reporters.
Tesla’s Model 3 sedan.
Tesla is aiming to start delivering the first cars to customers by the end in 2020.
Muske said the first Model 3 production cars will be in the second half of 2020, with about 6,000 made each year.
He also said the production car would be priced at $100 more than the Model X, which is available in the United States for about the same price as a Tesla Model 3 model.
“We are working hard to reduce our cost per kilowatt hour by as much as 75 percent,” Musk said in an interview on Bloomberg Television.
“That will mean a Model X price about a dollar more than a Tesla X, and a Model Y about $20 less than a current Model X.”
The Model X is currently priced at about $30,000 and the Model Y at $36,000 or $40 less than the current Model 3 car.
The Model X will be available from Tesla dealers in the coming months, Musk added.
Tesla, which has sold more than 2.4 million Model S sedans and X cars, said it would start selling the Model P next year.
It is also building a fleet of cheaper and lighter versions of the vehicles, including a smaller sedan and a small crossover SUV.