The fundamental strategy of Tesla is to start with high end cars while costs are high, drive down costs through volume, and gradually get to the point that low cost cars are possible. That&#x27;s why they built the Gigafactory, they want to drive volumes.<p>This is in stark contrast with the electric cars attempted by the traditional car companies. They would build an ugly and expensive econobox.<p>Starting out elite, and gradually growing the market worked great for Facebook. First they were Harvard only, then Ivy League, then gradually all colleges. Existing users didn&#x27;t like the changes, but if Facebook had stayed elite they wouldnt be worth $250B.