Tesla Will Get Trampled by the Mass Market

Bespoke no more - Picture courtesy Bloomberg

When Tesla confirmed that it will sell its new Model 3 for as little as $35,000 — $25,000 with government subsidies — it seemed like a step toward realizing the “secret master plan” that founder Elon Musk laid out a decade ago: “To enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model.”

If so, what explains the company’s dismal earnings report on Wednesday and the 40 percent plunge in its shares this year?

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