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).
Amid an ongoing labor shortage, more companies are turning to automation for processes like shipping and delivery in order to relieve supply chain pressures. But what does this mean for the wider labor market - will those jobs return? How will workers fare once supply chain issues ease? Sam Lurye, CEO and Founder of automation startup Kargo, joins Cheddar News' Closing Bell to discuss the pros and cons of automation, how workers can adapt alongside new technology, and how the pandemic led to the perfect storm for the rise of automation.
Ben McMillan, CIO at IDX Digital Assets, joins Cheddar News' Closing Bell, where he explains how the recent surge by Ethereum and Bitcoin can be connected to a play against inflation.
AI chipmaker Hailo raised $136 million in its latest funds round, representing one of the largest investments ever in the AI chip space. It comes amid the ongoing global chip shortage, and a surge in demand for the company's technology, which is used to power smart cities, cars and homes, and the next generation of retail. Hailo co-founder and CEO Orr Danon joined Cheddar News' Closing Bell to discuss.
The two biggest names in the ride-sharing industry reported earnings this week. Uber and Lyft both beat Wall Street expectations on their top and bottom lines, as the companies and the ride-sharing industry have recently faced several challenges like the pandemic, the supply chain crisis, and driver shortages. Johnson Research Group CEO Chris Johnson joined Cheddar News' Closing Bell to discuss.
Gaming technology studio Mythical Games recently raised $150 million in a round led by Andreesen Horowitz, bringing Mythical's valuation to above unicorn status at $1.2 billion. Mythical Games' mission is to create a new generation of gaming with play-to-earn games that allow players to play to win actual cryptocurrency. Now the company is taking it to another level with NFT technology, allowing players to play with characters they can truly own. Mythical Games CEO John Linden joined Cheddar News' Closing Bell to discuss.
Tesla CEO Elon Musk posed a question to his Twitter followers over the weekend: 'Should I sell 10% of my Tesla shares in order to pay off a looming $15 billion tax bill?' Shares plummeted after he posed the question, and just over half of 3.5 million Twitter voters said Musk should sell a fraction of his shares. Dan Ives, Managing Director of Equity Research at Wedbush Securities, joins Cheddar News' Closing Bell to discuss whether or not Musk's Twitter poll was significant amid his looming tax bill, and how investors are feeling after yet another controversial tweet from the Tesla chief.
David Ewalt, Editor in Chief of Gizmodo, joins 'Fast Forward' to paint a picture of what a metaverse-driven future looks like, and how it will propel the future of work and education.
