August 20, 2018—Elon Musk suggested it could take Tesla "maybe" three years to come up with a low-cost version of a car, even as he admitted it was "really tough" to do given the auto sector's economics and competition, reported CNBC.
Amid recent turmoil surrounding Musk's stated goal to take Tesla private, the CEO sat for an interview with YouTuber Marques Brownlee to discuss the future of electric cars. Musk explained that Tesla's comparatively smaller scale made it hard to compete against major producers like General Motors or Ford, given their massive scale in an "insanely competitive industry."
"I think in order for us to get up to...a 25,000 car, that's something we can do," he said. "But if we work really hard I think maybe we can do that in about three years," Musk added, saying it depended on both time and scale. He compared car making to the early years of the cellphone, which were bulky and lacked functionality, according to the report.
According to CNBC, currently one of the top trade-ins for a Tesla Model 3 is a Toyota Prius, according to statements Musk made during an August earnings call. The Prius, which starts at $23,475, is roughly half the cost of the $49,000 Model 3 starting price.