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Reading: Tesla’s smaller and cheaper electric vehicle is making progress
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EV-a2z > News > Tesla’s smaller and cheaper electric vehicle is making progress
News

Tesla’s smaller and cheaper electric vehicle is making progress

admin
Last updated: 2022/10/29 at 5:33 PM
admin Published October 29, 2022 4 Min Read
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CEO Elon Musk announced that production costs for Tesla’s third-generation electric car platform might be cut in half compared to those of the Model 3 and Model Y platforms currently in use. It is now reported that Tesla has continued developing its electric vehicle, as per Drive.

Contents
Production sitePricingLaunch datesTesla’s performance

Tesla's Next Car could be half the price of the current Model 3
Elon Musk said this smaller "next-generation vehicle" could eventually outsell all other Tesla models combined by reducing production costs and drastically increasing production volumes. pic.twitter.com/YKY28jsuT5

— Victor Fabry (@Vfabry) October 22, 2022

Production site

The smaller Tesla car is anticipated to have a hatchback body to compete with the Volkswagen ID.3. Meanwhile, its production will presumably take place in Giga Shanghai.

The Chinese factory produces Australia’s Model 3 and Model Y. Which Car reported that the annual capacity of Giga Shanghai is around 750,000 units. Remarkably, it has the largest installed capacity among Tesla’s facilities for its vehicle production.

#Tesla's #Shanghai plant is its first and largest overseas manufacturing facility that is capable of producing more than 750,000 vehicles a year. The plant helps this US-based company drive up its fast-growing global sales. pic.twitter.com/8rlFsayKde

— Bridging News (@BridgingNews_) October 25, 2022

However, the most awaited smaller Tesla car might also be made at other plants. For instance, the Model Y is produced in two US facilities (California and Texas), China and Germany.

Pricing

The cost of the smaller car may be reduced by 50%, making it available for as little as US$23,495 (AU$36,810). It costs 50% less than the least expensive Model 3 in the US. But for improved profitability, it will probably be priced at about US$30,000 (AU$47,000).

$35,000 Used Tesla Model 3 WITH Full Self-Driving unlimited for the life of the car! What a deal, get them while they’re hot and join me in the joy of FSD Beta without breaking the bank! $TSLAhttps://t.co/Isl0FHlbFJ pic.twitter.com/otZORSiHbL

— Whole Mars Catalog (@WholeMarsBlog) October 18, 2022

Launch dates

CEO Elon Musk announced last week to investors and the media that engineers are once more developing the smaller car. However, launch dates were not disclosed.

“We don’t want to talk exact [launch] dates, but this [new model] is the primary focus of our new vehicle development team,” said Musk.

“At this point, we’ve done the engineering for Cybertruck and for Semi, so obviously guess what we’re working on, the next-generation vehicle, which will be probably about half the cost of [the Model] 3/Y platform. It will be smaller, to be fair.

“But it will, I think … certainly exceed the production of all our other vehicles combined,” Musk claimed.

Tesla’s performance

Tesla delivered 936,000 vehicles the previous year. As of September 2022, Tesla has already sold 908,573 vehicles. At current manufacturing rates, the automaker is set to sell close to 1.3 million units by the end of the year.

In the US, prices for the Model 3 start at $US46,990 ($AU75,000). It is basically twice the price of Musk’s earlier predictions of a $US25,000 introductory price for the smaller car in late 2020.

However, CEO Musk’s remarks seem to simply be referring to production costs, leaving out Tesla’s profit margins. According to Forbes, the percentage of gross sales for Tesla vehicles from July to September 2022 was 27.9%, compared to 14% for other automakers.

Lars Moravy, VP of Vehicle Engineering, said, “We’re going to take everything we learned from S/X, 3/Y, Cybertruck, and Semi and pour it into that platform. As you’ve said to us many times, we’re on a 2-for-1 target, so, you know that implies trying to get to that 50% number again.”

“Yeah, it’s like […] How do we make two cars for the amount of effort it currently takes us to make one Model 3? […] And we do believe this can be done,” Elon added.

Tesla is developing a third vehicle platform that should undercut the cost of goods sold for Model 3 and Model Y similarly to how 3 & Y undercut Model X and Model X. Eventually @elonmusk expects the volume of that vehicle platform to surpass all S, 3, X, & Y vehicle production 🤯

— The Kilowatts 🚗⚡️ (@klwtts) October 19, 2022

It is confirmed that Tesla is developing a more affordable vehicle that should be available to a broader market. Tesla could definitely gain high profit from the said smaller car if it materializes.

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TAGGED: China, Electric Vehicle, EV, Tesla, Volkswagen ID.3
admin October 29, 2022 October 29, 2022
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