Musk says affordability of next gen Tesla EV is more of a concern than cannibalization

Elon Musk shared that Tesla is far more concerned with making its next vehicles more available rather than cannibalizing sales of its previous products.


Tesla Investor Day 2023 took place this week, and the company shared a wealth of information about its plans, growth, and investments. One such part of its plan is making a more affordable Tesla electric vehicle (EV) to reach broader demographics in the goal of helping customers transition over to electric. When asked whether or not the company was concerned that future vehicles could cannibalize sales of its previous products, Elon Musk answered that the company is more interested in achieving affordability over worrying about cannibalization within its business.

Musk shared this stance on the matter regarding new Tesla EVs during Tesla Investor Day 2023. During the Q&A segment of the overall presentation, Musk was asked about whether or not the company’s goal to create and ship a more affordable vehicle could damage sales of its previous-gen products.

Musk claimed that affordability and logistics is a far greater concern than cannibalization:

This is consistent with previous comments Elon Musk has made regarding the price of Tesla vehicles. In the past, when prices on Tesla EVs have been raised due to inflation and demand, Musk has gone on record to say that the company would reduce prices if inflation calmed down. Musk has further gone on to say that prices were at “embarrassing levels” before.

Whether or not Tesla is actually able to get to a point where it can reduce prices and put out a more affordable vehicle remains to be seen, but it clearly seems to be a high priority at the company. Stay tuned as we continue to follow for updates on this particular matter.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at and also find him on Twitter @JohnnyChugs.

From The Chatty
    • reply
      March 2, 2023 6:32 AM

      It’s true I come by more Teslas than cannibals these days

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      March 2, 2023 7:41 AM

      Interesting, wonder if there's a specific price they're targeting? Base Model 3 is ~35k USD, so are they hoping to get it down to $25k to compete with cars like the Honda Accord & Civic?

      I recently learned my friend was gifted her Model Y from her rich FIL. Realized I didn't take this into consideration when marrying :/ lol

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        March 2, 2023 10:22 AM

        I think with autonomous driving, Tesla is going to position themselves to be a service company, basically a glorified scooter rental service, or like Uber but without human drivers, or like a broadband. Instead of buying the hardware, its just part of your monthly fee. Pay a premium to get ahead of the line and get picked up quicker, in a more luxurious trim vehicle, or maybe a newer vehicle only available for "+" members, stuff like that.

        Why pay insurance, registration and upkeep?! Driving is stressful! Tesla+: It's just Magical.

      • reply
        March 2, 2023 10:26 AM

        It’s 35k after federal credit… till the end of this month. You can get a bolt for about 20k after credit.

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