A Tesla executive has asserted that the company still needs to focus on reducing the price of its currently available cars. He also mentioned that the anticipated Robotaxi program might be the entry point for a less expensive Tesla model.
Electrek reported that Tesla CEO Elon Musk had expressed his “embarrassment” at the current cost of its electric vehicles.
“We’ve raised our prices quite a few times. They’re frankly at embarrassing levels. But we’ve also had a lot of supply chain and production shocks and we’ve got crazy inflation.” CEO Musk explained.
“I think inflation will decline towards the end of the year. I’m hopeful — and this is not a promise — but I’m hopeful at some point we can reduce prices a little bit.”
The $25,000 Tesla was a hot topic on the internet, and it appeared like Elon Musk was on board and giving it utmost importance. Later, Musk clarified that it was not one of Tesla’s top priorities, disappointing potential customers.
Over the previous two years, Tesla’s prices have increased dramatically across its entire electric vehicle lineup due to certain limitations, including inflation, the rising cost of battery components, and high demand. For reference, Tesla’s most profitable vehicle, Model Y, starts at a staggering $66,000, while its cheapest model costs $46,000 in the United States.
Furthermore, CEO Musk occasionally stated that he was unsure whether a less expensive Tesla model was necessary in light of the development of self-driving technology, which made a sizable and less expensive fleet of electric vehicles used for ride-hailing services.
It must also be noted that Tesla recently disclosed plans to create its own unique Robotaxi vehicle just for the service.
On the other hand, Business Insider published a third-party version of the presentation in which Viecha restated intentions for a less expensive car and a more affordable package before the Robotaxi service:
| When asked about the possibility of Tesla making a cheaper EV, Viecha said that the company eventually wants a more affordable vehicle on the road. If a company wants to be a high-volume automaker, it needs a broad portfolio, and Tesla needs a cheaper offering before its company-operated robotaxi service comes out, he explained. |
However, the executive just mentioned that it would occur before the Robotaxi service, which has also had multiple delays, without going into further detail about the date. Viecha added, “Model Y will basically next year become the best-selling vehicle of any kind of all time in the world.”
Moreover, Viecha pointed out that Tesla still fails to employ certain demand catalysts for such a vehicle, including leasing.
It is also worth noting that the most crucial factor to pay attention to is the cost of manufacturing electric vehicles, as explained by Viecha. He also pointed out that despite price increases, Tesla’s cost per car dropped from $84,000 in 2017 to just $36,000 in recent quarters.
He said that the Tesla Robotaxi, which would be Tesla’s third-generation platform after the Model S, Model X, Model 3and Model Y, may bring some improvements.
Tesla enthusiasts have been anticipating for further updates about a $25,000 Tesla from Elon Musk. However, the CEO made it abundantly apparent that new models would not be arriving soon as he spoke in-depth about the company’s future ambitions.
