Tesla has already mentioned that the company will be able to cut costs by introducing its next-generation electric vehicle platform. Still, there needs to be more information provided, and there is no official release date.
InsideEVs reported Tesla bull investment firm Ark Invest’s forecast. It states that the company will be able to minimize vehicle costs by approximately fifty percent over the next five years. This prediction is based on several pieces of information shared during the recent Investor Day held by the US electric vehicle manufacturer.
Tesla achieves the best vehicle margins
Tesla has reportedly achieved some of the best vehicle margins in the market, which has significantly reduced the cost of its vehicles. Economies of scale assist Tesla in lowering costs as it upgrades its current factories and expands production.
During the Investor Day presentation, Tesla’s Chief Financial Officer Zachary Kirkhorn stated that the company is actively working on reducing costs at every level.
When comparing the older Model 3 and Model Y to the more recent Model S and Model X, he pointed out that Tesla had already reduced EV costs by 50%.
Tesla’s future product roadmap
During Tesla’s Investor Day, the company was supposed to unveil its next-generation platform and provide additional information about its future product roadmap.
Although they did discuss these topics, the company’s executives and team members could have revealed much better information except general ideas and principles.
Despite this, Ark Invest claims that Tesla has disclosed how the company plans to lower costs associated with production and vehicles.
According to Teslarati, the following are the steps that have been outlined by Ark Invest and shared by Tesla:
· Tesla intends to manufacture all controllers in its next-generation vehicles.
· Tesla has announced their intention to shift to a 48-volt battery architecture.
· Controllers locally connected to ethernet will be used in next-generation Tesla vehicles.
· The production of Tesla vehicles will move to a parallel assembly method.
Tesla’s 48-volt architecture
The first step involves Tesla bringing more of its operations in-house, which is something the company has been doing for some time now and is continuing to do at an accelerating rate.
During the presentation, there was an in-depth discussion about the 48-volt architecture. It was predicted to be adopted by Tesla in the future.
The automaker of electric vehicles also demonstrated how the assembly process of the future would be carried out.
Using the controllers connected to the local ethernet will improve the numerous wiring harnesses. Several teardowns by Sandy Munro show that Tesla now has more simplified wiring harnesses than the other companies in the industry.
In conclusion, the following was reported by Ark Invest:
“These electrical architecture changes should cut costs and give Tesla more control over its supply chain at the component level. They also will enable Tesla to transition its manufacturing to a parallel assembly process, slashing its manufacturing footprint and wasted time by 40% and 30%, respectively.”
Ark Invest
See Also
- Tesla boasts plans to cut vehicle production costs in half
- Tesla lowers its highly-priced electric vehicle to boost demand
- Tesla Model S/X won Kelley Blue Book’s Best Resale Value award for 2023
- Tesla shows off its futuristic assembly process for next-generation EVs
- The City of Venice to test the cost-effectiveness of the Tesla Model 3 fleet
