Summary
- Tesla will not produce a human-driven version of the Cybercab
- Tesla plans to start production of more affordable models sooner than expected
- New vehicles, including affordable models, are scheduled to start production in the first half of 2025
- Tesla’s approach allows for cost reduction and increased vehicle volume without new manufacturing lines
- Cheaper Teslas utilizing current and next-generation platforms may be released, possibly lower-priced versions of Model 3 and Model Y
Article
During the third quarter earnings call, Elon Musk stated that Tesla has no plans to produce a version of the Cybercab that is equipped with a steering wheel and pedals, effectively putting an end to the idea of the Cybercab becoming a low-cost, human-driven car. However, this does not mean that Tesla will not be producing cheaper vehicles in the future. Tesla is actually poised to start the production of more affordable models sooner than expected, as indicated in its Q3 2024 Update Letter, which noted plans for new vehicles, including more affordable models, are still on track to start production in the first half of 2025.
The plans for the new vehicles, including the more affordable models, remain on track for the start of production in the first half of 2025. Tesla stated that these vehicles will utilize aspects of the next generation platform as well as aspects of their current platforms, and will be able to be produced on the same manufacturing lines as their current vehicle lineup. This approach will result in achieving less cost reduction than expected but will enable Tesla to grow its vehicle volumes in a more capex-efficient manner during uncertain times. Tesla aims to fully utilize its expected maximum capacity of close to three million vehicles, enabling over 50% growth over 2023 production before investing in new manufacturing lines.
Tesla’s executives reiterated these plans during the Q3 2024 earnings call, indicating that consumers can soon expect the release of cheaper Tesla models, although they may not be the vehicles that the electric vehicle community expects. With Tesla’s comments about its affordable vehicles utilizing aspects of its current and next-generation platforms, there is a possibility that the company will release lower-priced versions of the Model 3 and Model Y to consumers next year. This strategy will allow Tesla to offer more affordable options to consumers without compromising on production efficiency.
Overall, Tesla is on track to produce more affordable models in the first half of 2025, with plans to utilize aspects of both current and next-generation platforms for these vehicles. The company’s focus on cost reduction and increasing production volumes in a more efficient manner aligns with its goal of reaching close to three million vehicles produced, representing over 50% growth over 2023 production. This strategy will allow Tesla to offer cheaper options to consumers while maximizing its production capabilities and preparing for uncertain times in the market.
For any news tips or updates related to Tesla’s production plans and upcoming vehicle releases, individuals can contact Tesla through email at simon@teslarati.com to provide information and insights that may be relevant to the company’s future developments. The anticipation of more affordable Tesla models in the near future, potentially including lower-priced versions of the Model 3 and Model Y, highlights the company’s commitment to expanding its product lineup and reaching a wider range of consumers with electric vehicles that are both cost-effective and efficient. As Tesla continues to innovate and evolve, the release of more affordable models will be a significant step towards achieving its long-term goals in the electric vehicle market.
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