Tesla Looking to Detroit for Help Producing Third Model

34-tesla-roadster.jpg

Tesla Motors is hoping to get some help from Detroit Automakers in producing its third model. Tesla has already introduced the Roadster into the market and is working on a second project for a sedan (Whitestar).

The third model is said to be a compact sports car that, according to Elon Musk, will cost around $30,000 and $35,000. While Tesla has said its Whitestar (rumored to be renamed later) sedan will have a run of more than 10,000 units, Tesla wants its third model to be produced in high-volume – which it can’t do without the aid of Detroit’s major automakers, according to Greentech Media.

Tesla knows to lower the price, it needs to produce mass quantities of the model.

Eric Fedewa, vice president of global powertrain forecasts at automobile research firm CSM Worldwide, said, “For any manufacturer coming into this market, the barriers really would be sales and service and having the distribution channel and dealer network. Those would be the biggest challenges, in addition to manufacturing. So partnering with an existing manufacturer that's already got that distribution makes a lot of sense.

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Comments

Doug

Does anyone else suddenly see potential for the big three to gain new technology?

Oollyoumn

Will this be another money pit that no one in Detroit can currently afford at this time?

Mena

What crack is Tesla smoking that makes them think they can sell an electric car at $30-$35k at 10k units a year? They can't even figure out how to make a reliable transmission in the roadster.

Russ Bellinis

What do they consider "high volumn?" What do they consider a "sports car?" Sports cars DO NOT have usable back seats. A usable back seat makes a "sports sedan" not a "sports car." Unless you are selling your sports car on a world wide market, 30k-35k units a year is as high a volumn as you can expect to sell. Chevrolet makes 35k Vettes a year and is happy to sell that many. They price it high enough to make a nice profit on each one, but hold the cost down by using many parts from the rest of the GM automobile line. If they cut the price on the Vette by 1/2 across the board, they would probably not see a significant increase in sales because the market for 2 seater cars is limited. They are going to build 10,000 sedans, and then do a high volumn sports car? Sounds like someone in charge has their head firmly planted where the sun don't shine!

Darryl

some clarifications on the original article and answers to the commenters:

In speaking at the conference, I made the point that we were considering a partnership on the third car, a sports compact car planned at a volume of >100,000 and a price of about $30-35K.

I didn't specify that we were looking to one of the Big 3 in Detroit. There are many other potential partners. That was an incorrect inference by Greentech Media and unfortunately make the title of this article incorrect.

@Russ Bellinis - we are talking about a 4 seat compact car, similar in size to a 3-series. We call it a sports compact car because the acceleration, handling and styling will be very sporty. This is consistent with what the common jargon is for a sports compact car.

@Mena - I can't specify what type of crack, that is a trade secret.

Craig

I have to wholeheartedly disagree with Russ. There have been many sports cars with a usable back seat. What is "usable" or "true" to you? To me there is an ocean of difference between the complete lack of a back seat in a Miata and a "servicable" back seat in a Ford Mustang. Flaws aside, both of these cars considred "sports cars". I have frequent need for a fold-down back seat and a trunk which rules out any two-seat sports cars. This narrows my car-buying options considerably because rear wheel drive 2+2's are what I happen to prefer--- not a Miata OR a wannabe front-drive "sport" econo-compact.

If Tesla's third car is generally designed anythinng like their range-topping roadster, I'm expecting great things. Drive layout and suspension are the only real dividing lines between regular cars and sports cars.

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