Fans of Tesla Motors were excited to hear that the Model S sports car would be available for less than $30,000 upon its release in fall 2010. The motor company’s latest announcement will surely knock the socks off these electric vehicle enthusiasts. Tesla has released tentative plans for an all-electric family car called the Bluestar sometime after the Model S makes its debut.
Tesla’s announcement of the Bluestar project was combined with some general comments by company representatives about the future of the San Carlos, California automaker. The future looks bright for Tesla if it can live up to the hype of the Model S, continue to produce its Roadster at high volumes and compete with traditional automakers. This latter point was addressed at the Emtech 2008 conference when Tesla CTO JB Straubel discussed the possibility of all-electric pickups, coupes and minivans in the next decade.
The popularity of Tesla’s Roadster among a dedicated group of electric car enthusiasts is only one reason why the Bluestar project looks like more than an ephemeral concept. Tesla has benefited from fluctuations in gas prices as well as the rising profile of alternative energy issues in the 2008 presidential campaign. Straubel mentioned the growing competition among automakers to bring all-electric cars to market as a reason why Tesla is proceeding with additional models. Tesla’s head start on Chevrolet, Chrysler and other automakers ensures that the Model S will sell well once mass production begins.
The major issue for the Model S, Bluestar and as-yet-unnamed models in the future is the limited production of the Tesla Roadster since its introduction. Tesla wants the Model S and Bluestar to be priced affordably to attract customers priced out by the Roadster. The only way that Tesla can achieve this goal is scaling up manufacturing to increase inventories and decrease prices.
Tesla has kept open the possibilities of working with equipment and auto manufacturers to facilitate higher production levels once the Bluestar is ready for the road. The automaker is reaching a critical point in its development: can it survive partnerships with larger companies without sacrificing its appeal to electric car drivers? If Tesla Motors decides to work with another automaker to boost its production numbers, it will have to compromise on some of its standards in the process.
The Model S and the Bluestar should be produced in large numbers to get more electric cars out on the road. We should not expect Tesla Motors to stay the cool rebel in the auto industry forever. If Tesla can sacrifice some of its identity to keep prices lower on electric vehicles for the average family, everyone but the few drivers angry that they invested in expensive Roadsters will be happy.
