A cheaper model of Tesla’s electric car will go on sale late next year, CEO Elon Musk told investors today. If it goes on sale as per Musk’s ambitious plans, it could be in time for Tesla to fend off the growing influence of Chinese EV makers.
The “next generation” small car Musk mentioned could be the equivalent of a $25,000 entry-level EV. made fun of In a recent biography of Musk, author Walter Isaacson writes: Musk did not discuss the price of future vehicles during today’s call. But if Tesla can meet its 2025 production goal, the car could become the cheapest EV on the U.S. market and compete with lower-cost EVs offered by rival automakers in other countries. Tesla currently sells the base Model 3 for $35,100. Musk did not say when customers would start receiving the new model.
The cost of EVs is a major barrier to further EV adoption.Recent global survey A study by consultancy Deloitte found that as interest rates continue to rise, cost is driving purchasing decisions for drivers, particularly in Germany, the United States and Japan. Although the total cost of owning an EV may be lower than a traditional gasoline car due to fuel and maintenance savings, EVs are still more expensive upfront. The average U.S. car, including all drivetrain technology, costs $48,800 as of December. According to automotive research firm Kelley Blue Book, EVs cost $50,800;
Finding ways to lower the price of EVs is also important for Tesla. Tesla is engaged in a global price war with other automakers and is going all-in on electric vehicles, threatening to dethrone Mr. Musk’s company as the world’s top electronics vendor. Chinese automaker BYD delivered more EVs than Tesla last fall, but the U.S. automaker surpassed Tesla in annual deliveries. According to China, China shipped more than 4 million vehicles overseas, and China’s car exports more than doubled last year. Chinese industry association. Protectionist trade policies prevent Americans from buying cheap Chinese-made cars domestically. However, automakers including BYD, reportedly considering Manufactured in Mexico to avoid the heaviest tariffs.
On a call with investors today, Musk expressed respect for his rivals. “Chinese car companies are the most competitive car companies in the world,” he said. “If trade barriers were not established, most other car companies around the world would be crushed. They are very good.”
The last time Tesla announced its plans for a “next generation” car was during an investor day presentation in March 2023. The slide teased Tesla enthusiasts with an image of a car covered in a gray sheet. On a conference call with investors today, Musk and other executives said the new car will be made with “innovative” manufacturing technology, but provided no details on what that includes. I didn’t.
But even as he announced the next-generation car, Musk questioned whether Tesla would be able to produce it on time. The automaker often delivers vehicles such as the Cybertruck, Tesla’s Semi, and its “second-generation” Roadster sports car months or even years later than Musk’s original delivery schedule. . “Everything I say should be taken with a grain of salt,” said Musk, who is known for his overly rosy product predictions. “I don’t want to surprise you, but I tend to be optimistic about time.”
