Leading electric automaker Tesla previously confirmed plans to develop and launch its most affordable model, widely referred to as the next-gen $25,000 EV. Tesla Chief Elon Musk and some executives shared some new information about the new Tesla car on Wednesday during the Q3 2023 Earnings Call, Teslarati reported.
Updates
Tesla Chief Elon Musk revealed some updates on the $25,000 EV’s design, saying it would be more utilitarian than the Cybertruck’s distinctive exterior layout.
“Yeah. Just to be clear, it will be cool, but it’s utilitarian. It’s not meant to, you know, fill you with magic. It’s to get you from A to B. It will still be beautiful, but it’s utility.”
Tesla CEO Elon Musk
The Tesla boss further noted this next-gen model will enable faster production ramp-up primarily due to its streamlined design and build. In effect, its production may “achieve a units-per-minute level that is unheard of in the auto industry.”
One of the company executives also indicated that the $25,000 would also facilitate easier automation and reduce costs. For context, Tesla currently utilizes the Kato 4680 plant as its pilot production line.
“I mean, the single location makes it easier to automate. It also makes it lower cost. Yes, that’s intrinsically lower cost.”
Tesla Executive
Notably, the Musk-led company is also upgrading the production line for the next-gen model’s design. Therefore, it may feature the more efficient battery cells, 4680.
The Tesla Executive also reiterated the company’s plans to use the Giga Mexico for the next-gen model’s production.
“For Mexico, we are working on infrastructure and factory design in parallel with the engineering development of the new production that we’ll be manufacturing there. That’s all I can share for that.”
Tesla Executive
What’s currently known about the next-gen Tesla EV?
The highly awaited next-gen Tesla car will be the automaker’s cheapest offering in history. The new model seems to be a compact crossover, like a mini version of the popular Tesla Model Y.
Tesla even stated earlier this year that it plans to prioritize the development of the $25,000 model over its other planned next-gen EVs.
Top Gear asserted Tesla’s previous claims that the next-gen vehicle would offer a 50% production cost markdown and 40% manufacturing footprint reduction through the “next-generation vehicle manufacturing efficiencies.”
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The Tesla boss and executives’ recent remarks about the next-gen $25,000 electric car are indeed exciting updates that may further stimulate hype among fans and investors. However, CEO Musk also warned during the Earnings Call that high-interest rates can potentially influence the new model’s final price.
