AUSTIN, TX – Elon Musk has announced that Tesla is currently working on developing a new next-generation electric vehicle (EV) platform that, when released, will retail for approximately half the price of the company’s current Model 3 and Y vehicles.
Tesla has been open about their desire to make cheaper cars over the years, but in contrast to that sentiment, prices have actually gone up due to numerous global economic issues, including inflation and overall high demand for EVs.
Previously, Musk had been quoted as saying that Tesla would not be working on producing a cheaper EV in 2022, with the company’s focus instead being on increasing Model Y factory output and the new Optimus, a humanoid robot prototype that can walk, carry packages, water plants and move objects.
However, speaking during a conference call on Wednesday that followed the release of Tesla’s Q3 2022 financial results, Musk announced the smaller and cheaper next-gen vehicle, which he said he has very high hopes for.
It will, I think, certainly exceed the production of all other vehicles combined. It’s the primary focus of our new vehicle development team, obviously,” he said. “So, it’s obviously what we’re working on, the next-generation vehicle, which will be probably be about half the cost of the 3 and Y platform. It will be smaller, to be clear.
Currently, the base Tesla Model 3 starts at $46,990, which would place the price of the new EV announced by Musk Wednesday at approximately $23,000. If that is the case it will be an impressive feat on the part of the automaker, but some skeptics were quick to point out that the Model 3 originally retailed for $35,000, which quickly proved to be financially unsustainable due to high production costs.
Musk appeared to reference the pricing issues the Model 3 encountered early on during the conference call, saying that Tesla has learned lessons over the years that they will apply to the development of the their new next-gen EV.
Obviously, we’re going to take everything we learned from S, X, 3, Y, Cybertruck and Semi into that platform,” he said. “But we are on a 2-for-1 target. We’re trying to get to that 50% [of cost] number again.”
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.