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May 22, 2018

Tesla needs to sell more expensive Model 3s so the company doesn’t ‘die,’ Musk says

Tesla CEO Elon Musk announced the final details of the dual-motor, all-wheel drive version of the Model 3 over the weekend, including a top-of-the-line variant that is more expensive than a base-level Model S or X. While we’ve known for a long time that these were coming, this is the most clarity Tesla’s offered yet about specs, pricing, and options.

Taken one way, it’s a sign Tesla is working through the early production struggles of the Model 3 and is ready to start offering more diverse options, much like it does with the Model S or X. But Tesla also needs to sell these more expensive Model 3s to grow its revenue at a time when the company is spending more money than ever. In the meantime, Tesla is holding back on making the cheapest...

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