Tesla: Build the Expensive Car First (2008)
by Anonymous
Elon Musk's master plan was counterintuitive: build an expensive sports car (Roadster), use profits for a sedan (Model S), then build an affordable car (Model 3). Traditional automakers said EVs had to be cheap first to succeed.
Top-Down (Expensive First)
2008
year
Sports car → luxury sedan → mass market
strategy
Tesla Roadster ($109,000)
first product
Chosen — Tesla became world's most valuable automaker
outcome
Bottom-Up (Cheap First)
2008
year
Affordable EV to maximize adoption
strategy
Would need massive capital upfront
first product
Not chosen — batteries were too expensive for cheap cars
outcome
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