That question was brought up by one venture capitalist Wednesday at the Techonomy Detroit conference hosted by the Detroit Economic Club.
View full sizeThe Tesla model S (right) and Tesla Roadster.DETROIT, MI- Should the Detroit Three focus on flying cars instead of electric vehicles?
That question was brought up by one venture capitalist Wednesday at the Techonomy Detroit conference hosted by the Detroit Economic Club.
“I think Tesla is just going to take you to task,” Tim Draper, founder of venture capital firm Draper Fisher Jurvetson, told the hundreds in attendance. “If you’re going to stay in automotive, you’ve got to make that car fly.”
California-based Tesla Motors Inc. – founded in 2003 – makes luxury electric vehicles. Its first two models are the Roadster, which was the first fully electric sports car, and the Model S, a fully electric luxury sedan. Earlier this year, the company also unveiled the Model X, an all-wheel-drive, seven-passenger crossover utility.
Tesla’s vehicles are far more expensive than pricing of General Motor Co.’s Chevrolet Volt plug-in hybrid and Ford Motor Co.’s all-electric Focus and C-Max plug-in; but Tesla’s main focus is on the luxury market.
The Model S – the less expensive of the two production vehicles so far – starts at $49,900 after a $7,500 federal tax credit. The Roadster, which is currently "sold out" for the U.S. market, started at $109,000.
Former GM Vice Chairman Bob Lutz, who was instrumental in helping bring the Volt to market, told Reuters that Draper's claims are "absurd."
Draper, who is an investor in Tesla, also turned heads by saying Detroit has lived off the “automotive tit” long enough and it’s “time for a change.”
What do you think? If Tesla enters the non-luxury market can it give GM, Ford and Chrysler a run for their money?
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