According to The Wall Street Journal, the CEO of Tesla as known as the company with its fully electronic luxury car line, Elon Musk said in the interview that there is a high possibility of fully autonomous electronic car with Teslas’s own autonomous driving technology being produced in next 5 to 6 years. In addition to this, Tesla is estimating to start beginning free cash flow in the 3rd quarter of 2015. Mr. Musk says that he will be able to pay $5 millions for the planned giga-factory without any other borrowing. Clearly company is on the path toward the success.
The car with Tesla’s own autonomous technology and without significant competitors, the price is expected to be comparatively high. This raises a question, what is the demand for this car going to be? Would people be willing to pay that much of money for an autonomous car?
The question may be already answered looking at the demands for the previous models from Tesla. Mr. Musk says that the current demand for Model S with its price of $71,000 and up has not been a problem and there is even a waiting list for it.
Model S Copyright: Tesla Motors
It is interesting to see how this company is handling its value proposition pretty well and attracting many customers all over the world.