Elon Musk Teases New Details About Tesla’s Affordable Car After the Cybertruck

Tesla's Sub-$30,000 Car Coming Soon

Tesla is inching closer to releasing a sub-$30,000 car, according to Elon Musk. The CEO revealed that the next Tesla vehicle after the Cybertruck will be more affordable. The company plans to build the long-awaited electric vehicle (EV) at the Texas Gigafactory. This news comes as EV shoppers eagerly await more cost-effective options in the market.

Musk's Vision for the Affordable Tesla

During an interview with automotive manufacturing expert Sandy Munro, Musk expressed his excitement for Tesla's upcoming $25,000 car. He stated that the company is making significant progress and reviews production plans on a weekly basis. Musk believes that the manufacturing revolution brought about by this vehicle will surpass anything the industry has ever seen.

Tesla's Plans for Production

Musk has been teasing a sub-$30,000 Tesla since 2020, suggesting that lowering battery and cell manufacturing costs would make it possible. He informed Munro that the new vehicle is set to be produced at the Texas Gigafactory, where the Cybertruck is currently manufactured. Additionally, Tesla plans to have a secondary assembly line at its upcoming plant in Mexico.

The Impact on Detroit Automakers

The US electric vehicle market has experienced significant changes in the past year. The customer base has transitioned from affluent early adopters to more practical buyers seeking to switch from gas-powered cars to electric ones. This shift has created a demand for more affordable EV options, highlighting the disparity between current demand and available vehicles. Many car companies have adjusted their production plans accordingly, while dealerships offer discounts to move inventory.

Tesla has spearheaded a decline in average EV prices this year, sparking a price war that has posed challenges for Ford and GM as they strive to establish their electric vehicle plans. The introduction of more affordable Tesla models will further intensify competition for Detroit automakers and other traditional car manufacturers. These companies are still struggling to turn a profit on their electric offerings.

Tesla Buyers and Price Sensitivity

The reaction to the Cybertruck's pricing indicates that even Tesla is not immune to changes in price sensitivity within the EV segment. The starting price for the Cybertruck, which was revealed last week, is nearly $61,000 for the cheapest option (available in 2025), $20,000 higher than Musk's initial promise. While this aligns with current EV truck prices, some reservation holders had anticipated a more affordable option.

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By: nnaughton@insider.com (Nora Naughton)
Title: Elon Musk Teases New Details About Tesla’s Affordable Car After the Cybertruck
Sourced From: www.businessinsider.com/tesla-new-affordable-model-details-elon-musk-teases-after-cybertruck-2023-12
Published Date: Wed, 06 Dec 2023 13:13:01 +0000