Summary
- Tesla has cheaper electric vehicle models coming out next year, starting in the first half of 2025
- The vehicles will utilize aspects of the next generation platform and current platforms, and be produced on the same manufacturing lines as the current line-up
- Elon Musk clarified that all Tesla vehicles, including the cheaper models, are viewed as future robotaxis
- The price for the cheaper Tesla models may start at around $37,500 after incentives, above the originally projected $30,000
- There is speculation on whether Tesla will introduce a downgraded Model 3 or a mix of Model 3/Y and Cybercab as the affordable models
Article
The quarterly shareholder letter from Tesla indicated that the company is planning to release more affordable electric vehicle models in the first half of 2025. These models are expected to utilize aspects of both the current platforms and the next generation platform, allowing them to be produced on the same manufacturing lines as the current vehicles. While there was some confusion about whether these vehicles would have steering wheels, it seems that they will be “normal cars” that are smaller or use cheaper components than the existing Model 3/Y models.
There was a question posed during the shareholder conference call about when Tesla would release a $25,000 regular car model that is not intended for use as a robotaxi. Elon Musk seemed to take issue with the term “non-robotaxi” and emphasized that all Tesla vehicles, even current ones, are seen as future robotaxis in terms of hardware. Despite the confusion, it appears that the new lower-cost models mentioned in the shareholder letter will not be completely autonomous vehicles like the Cybercab, but rather affordable normal cars.
In terms of pricing, Musk mentioned that the lowest cost they could envision reaching for these new models was around $30,000 after incentives, which would be approximately $37,500. This price point may be higher than initially anticipated, especially when considering the elimination of the lower-cost Model 3 Standard Range. It remains to be seen if Tesla will be able to offer a more affordable model or if the costs will remain relatively high compared to competitor’s offerings.
During the conference call, Musk stated that he was unaware of any other EV producer making a profit, which seemed surprising considering companies like BYD are profitable with their EV offerings. This raised questions about Tesla’s ability to reduce costs below $35,000 per vehicle. The future plans for Tesla’s vehicle lineup remain uncertain, with speculation ranging from a downgraded Model 3 to a new model combining features of the Model 3/Y and Cybercab at a lower price point.
Overall, the details regarding Tesla’s upcoming affordable electric vehicle models are still somewhat unclear, with conflicting information from the shareholder letter and conference call. It remains to be seen how Tesla will balance production costs with offering more affordable options to consumers. The company’s approach to delivering lower-cost models will likely have a significant impact on the electric vehicle market and the overall transition to sustainable transportation.
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