AUSTIN, TX – Tesla CEO Elon Musk, at the company’s investor day presentation at its Austin, Texas, headquarters on Wednesday, claimed that innovative production techniques and the use of smaller factories will enable the electric vehicle (EV) manufacturer to cut the cost of their next-generation models in half.
While presenting Tesla’s so-called “Master Plan 3” to investors, Musk said that the changes could enable the company to deliver next-gen EVs for approximately $25,000, but while attendees were suitably impressed by this lofty claim, they were nonetheless disappointed that none of the proposed new models were on-hand for viewing.
Musk, however, noted that he was saving the unveiling of the next-gen Teslas for the near future so it can be done properly, with the South African tech tycoon telling an analyst that had inquired when the new models would be revealed that “We’d be jumping the gun if we answer your question.”
Among the methods that Tesla will be employing to manufacture their cheaper next-gen models include new plans to construct a new factory in Mexico near Monterrey, in addition to expanding production in the company’s current facilities.
Experts are speculating that the upcoming, more affordable offerings from Tesla will likely be smaller than the EV company’s current models, but no concrete facts about these vehicles were revealed at Wednesday’s event.
While the news of cheaper next-gen models was received well, overall reports indicate that investors were underwhelmed by Musk’s “Master Plan 3” presentation due to a lack of details on the new vehicles. But Musk responded to the disappointment by noting that the company’s advanced vision for its future justifies its high stock valuation versus other automakers.
Some minor details on upcoming Teslas and how they would be made more cheaply where hinted at by the company’s Chief Financial Officer Zachary Kirkhorn, who said that the next-gen EVs would be built with fewer wires and transistors and would use fewer expensive rare-Earth metals in the batteries.
“As we improve affordability, the number of customers who have access to our products increases,” Kirkhorn said.
Joe Mcdermott is a staff reporter who keeps his eyes peeled for interesting automotive news. He works mainly for our subsidiary, The Published Reporter® as well as our IT firm, SEARCHEN NETWORKS®. Mcdermott, one of our first and thus veteran reporters, is also a data analyst for select independent news and media organizations in the United States.