Speaking of China - Tesla's Thinking Small

It all depends on the pricing and the incentives the government is willing to give to buyers. Remember that the smaller the car, the more critical every extra dollar of price becomes. If there is a 20% price differential between a $10,000 economy car and its electric equivalent, the EV costs $12,000, a pretty substantial jump in price in that end of the market. That same 20% on an $35,000 car raises the price to $42,000 but that difference is not as significant seeming to the prospective customers In that market. The other thing is that the smaller the car, the less significant the fuel savings are. If your ICE is already getting 40 mpg and you are driving 10,000 miles per year, with gas at $4 per gallon you are only saving about $20 a week. So it will take roughly two years to make back that extra $2,000 you spent up front, and that is without consideration of the costs of financing that additional $2,000 in your loan, etc.

Lokki, I think you meant to say, "the CHEAPER the car, the more critical every extra dollar..." I prefer to drive smaller cars, because (ceteris paribus, as economists say) they have superior driving characteristics. But I will not drive a penalty box, so I want it to be well-equipped - and will pay for that.

@ect Volvo has a C30 waiting for you. Actually they don't, but for a couple of glorious years they did!

@redgolf: Bikes are not cars and there is already a surprising number of eBikes available at far lower prices than $2500 - $3500 (estimated from various Euro prices listed in linked article.) Cars like the Honda Fit, Toyota Yaris, Cooper Mini and others are already pretty popular AND are coming with battery-electric versions. This could well be an opportunity for Tesla to come up with something more like the Cooper (Mini) as a fun and agile vehicle as compared to the others' more staid and utilitarian vibe.