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).
Exercise equipment maker Peloton is attempting to run away from a recent bout of controversy. CEO John Foley published an open letter to employees on Thursday after reports that said Peloton was pausing production of its Bike and Tread products, delaying the opening of a new U.S. factory, and considering job cuts. In the letter, Foley wrote that the information in the reports was 'incomplete,' 'out of context,' and not reflective of Peloton's strategy. Peloton's stock responded on Friday, with shares bouncing back after falling nearly 24% in the regular session on Thursday. CFRA Research's Director of Research Ken Leon joined Cheddar News' Closing Bell to discuss.
Home essentials maker Outlines announced its launch at the beginning of 2022, along with $1 million in pre-seed funding led by Social Impact Capital. Outlines says it is re-imagining how we keep our homes clean while also reducing plastic waste. The company's debut product, the Shower Liner System, is made of long-lasting materials, including easy-to-recycle plastic. Outlines co-founder and CEO Luke Young and co-founder and COO Megan Ceryanec joined Cheddar News' Closing Bell to discuss.
eToro, the social trading platform that offers crypto, forex, and equities, recently announced that it's giving U.S. users the option to include stocks and ETFs as part of their investment portfolios. Lule Demmissie, CEO of eToro U.S., joined Cheddar to talk about the company’s expanded offerings. "We felt, although crypto is a fantastic asset class, that individuals benefit from having a broader access to different kinds of investments, and equities is definitely one of them," Demmissie noted.
Coming off of CES, Blink Charging announced a partnership with legacy automaker General Motors to provide charging stations for its newest electric cars. The company specializes in stations they own and operate that also accommodate residential and commercial locations. Michael D. Farkas, founder and CEO, noted that they "don’t discriminate” when it comes to locating their chargers while also taking the philosophy of seeing their hardware more like hot water heaters rather than smartphones constantly in need of upgrading. "We believe it's one of the reasons why we were selected by GM," Farkas said. "These dealerships have to invest in these locations and make sure that this hardware is workable for a very, very long period of time."
Simeon Siegel, managing director and senior analyst at BMO Capital Markets joins Cheddar News to discuss CNBC's report that Peloton plans to halt production, despite the company's CEO denying those claims.
Jackie Rotman, founder and CEO of the Center for Intimacy Justice joins Cheddar News to talk about why Facebook is banning ads by companies targeting women's sexual health but not ads catered to men.
TikTok recently announced that it is testing a paid subscription model. The news comes days after Instagram publicized a similar service. TikTok has made $2.3 billion from in-app purchases, but mostly through tips, in 2021, showing that its users may be open to spending money on the platform.
Netflix beat its earnings projections for Q4 — but the stock still plummeted as the streaming pioneer cut back on its forecast for future subscribers. Michael Robinson, the chief technology strategist at Money Map Press, joined Cheddar to discuss the report and what's driving the downward pressure on its shares. "It's the growth is really what's worrying people," he said. "'A' we have slowing economic growth, and 'B' we've got slowing growth for this company, as 'C' we have an increase in competition."
