Elon Musk's Life-or-Death Decision for Tesla's Future
*By Madison Alworth*
Elon Musk's decision to push a high-end Model 3 vehicle instead of the more affordable base model of Tesla's electric car is one of life or death for the electric car company.
The mercurial chief executive said over the weekend that the new "Performance" Model 3 is available for pre-order, and by proceeding with the souped-up version, the company can better figure out how to deliver on the promise of the mass-market Model 3.
In a [tweet](https://twitter.com/elonmusk/status/998400110156550144) late Sunday, Musk put the choice in stark terms: If he were to press ahead with the $35,000 base version, Tesla would "lose money and die." Coming forward with the $78,000 dual-engine Model 3 allows the company scale for production without hemorrhaging more cash.
"What we don't know yet, even though these specs are out there, is when those cars will actually be arriving," said Marty Padgett, editorial director at Motor Authority. "If you went on the website today, if you order your Performance model today, it says six to nine months for delivery. What's still missing is that mythical $35,000 Tesla Model 3."
On Twitter, Musk touted the souped-up Model 3's specs: all-wheel drive, top speed of 155 miles per hour, and the ability to go from 0 to 60 mph in less than 4 seconds.
It will cost more than double the base-level Model 3. And Musk didn't indicate how much longer consumers ー or investors ー would have to wait for the much-anticipated cheaper version.
One the one hand, the decision to come ahead with the "Performance" model may show that Tesla's production technology is far enough along that it can offer more options. However, the price point may also indicate that Tesla can't deliver the industry-changing mass market vehicle Musk promised.
It seems the company is further away than ever on sustainably producing a mass-market model.
Tesla would "lose money and die" if it were to ship the low-cost Model 3, Musk said in a [tweet](https://twitter.com/elonmusk/status/998400110156550144) over the weekend. He made the decision to go ahead with the high-end Model 3 over the cheaper version to work out what it would take to deliver any car at a sustainable rate.
Selling the high-end version enables the company to "achieve target rate and then smooth out flow to achieve target cost," Musk said. That could take three to six months.
It remains to be seen how many customers would want the more expensive Model 3 over the affordable car they expected, or if the new Model 3 may cannibalize sales of the top of the line Model S.
"They're selling new, they're selling innovation," said Padgett. "Tesla buyers want the latest thing."
For the full interview, [click here](https://cheddar.com/videos/teslas-model-3-is-getting-an-upgrade).
Rene Ritchie, independent tech analyst and co-founder of the Nebula Podcast, joins Cheddar News' Closing Bell, where he breaks down what investors will be looking for from Mark Zuckerberg this week and how the tech giants stack up when it comes to augmented reality and virtual reality products going forward.
According to multiple reports, President Biden's upcoming executive order for the crypto marke would assign some government entities to study cryptocurrencies, stablecoins and NFT's with the goal of developing a workable regulatory framework. Douglas Borthwick, Chief Business Officer at INX, joins Cheddar News' Closing Bell, where he elaborates on what role the Biden administration would play under this order.
Nutritional supplement beverage company Athletic Greens has achieved unicorn status. The company announced a new $115 million funding round, bringing its valuation to $1.2 billion. The company's flagship product AG1 combines 75 different vitamins, minerals, and other nutrients into one daily serving. Athletic Greens says it is poised to reach the millions of consumers who are currently driving the health and wellness market's exponential growth. Athletic Greens founder and CEO Chris Ashenden joins Cheddar News' Closing Bell to discuss.
Is Spotify a platform for content creators, or is it a media company? The streaming giant may have to find an answer sooner rather than later amid a controversy involving its most popular podcast host, Joe Rogan. Rogan has hosted guests who have made false claims about COVID-19 vaccines, and in turn, some musicians like Neil Young and Joni Mitchell have removed their discographies from Spotify in protest. Rogan says he welcomes content advisories, and will balance out his guests going forward, but is it enough? And is Spotify liable in any way? John Freeman, Vice President of CFRA Research, joins Closing Bell to discuss Rogan's response to the controversy, whether Spotify should be considered a media company with responsibility for its content, and more.
The gaming industry has seen multiple large scales deals this month alone, including Microsoft's megadeal for Activision Blizzard. And, seemingly in response, rival Sony, picked up Bungie for $3.6 billion, a studio once owned by both Microsoft and Activision. The sector is reportedly on track to spend $150 billion on mergers and acquisitions just this year alone, a record-breaking total, according to investment firm Drake Star Partners. Michael Metzger, a partner at the firm specializing in technology, media, and communications, joined Cheddar to discuss the flurry of deals in the gaming space and what might be behind the hot M&A activity.
Ari Redbord, head of legal and government affairs and TRM Labs, joins Cheddar News to discuss why Facebook is ditching its crypto project and what that means for the space.
A virtual gathering in the online space, Decentraland, of Elvis Presley impersonators is looking to grab the Guinness World Record for most Elvis impersonators in one place after the record-keeping org recently approved the use of avatars as stand-ins for people.
