You want a Tesla but can you afford a Tesla? Elon Musk wants to take EVs to all

Tesla is the global leader when it comes to electric cars and has an absolutely audacious ambition of selling 20 million electric vehicles or EVs across the world by 2030. But Tesla cars are not exactly affordable and not much has yet come regarding plans to have an offering that is cheaper than Model 3. Elon Musk, therefore, has a plan in place.

Tesla CEO Musk recently admitted that while Tesla EVs are much sought after in global markets, these are not considered affordable by many. "The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla," Musk said last week at Tesla's investor day. And soon after, Tesla announced a price cut on its Model S and Model X EVs in the US market in the region of four per cent to nine per cent.

This is not the first price cut from Tesla this year, in fact the fifth since January. And it is not just in the US that the company is looking at making its EVs more affordable. In China, for instance, Tesla has slashed prices of some of its EVs in the face of increased competition from both global as well as local rivals. This - either directly or indirectly - has forced at leas some of the rivals to follow. In November, Mercedes announced a price cut by up to $33,000 on the EQE and EQS.

At a time when manufacturing cost has been on the rise - it is more expensive to produce one EV unit than one unit of a vehicle with an internal combustion engine, Tesla does have an edge courtesy scale which Musk may be now looking to exploit. But for how long? Experts warn that the current Tesla lineup the world over is rather dated and in the face of rivals going forward with a plethora of models, the US-based manufacturer will have to diversify. And diversify quick. The Tesla Cybertruck could be a big shot in the arm even though its production timelines have hit several delays. If the bookings for the Cybertruck eventually turns into purchases, Tesla would be well poised to possibly extend its lead.