There has been talk of Tesla’s $25,000 car for several years, an entry-level model that Elon Musk promised in 2020 and two years later said was no longer a priority. However, discussions about Tesla’s cheapest car are back and an announcement could be made on Wednesday.
The cheapest Tesla cars cost about 45,000 euros, excluding government subsidies.
In 2020, Elon Musk said that a $25,000 Tesla could arrive “within three years.” We are in 2023, but such a car is not close, especially since since then the world has experienced a pandemic, several crises and record price increases.
However, Tesla is working on a new architecture and more efficient batteries as Elon Musk aims to reach a point where the model will cost half the cost of the Model 3 to produce.
When Tesla’s cheapest model comes out, it could be a small city car, a three-door hatchback that is clearly smaller than the Model 3. Teslarati reported in January that this cheaper Tesla would be released in 2024, but it seems hard to believe that coming so soon
It has been speculated that the car will be called Model 2 or Model Q and will most likely be intended for ride-sharing services and have a high degree of autonomy. Apparently, Tesla will hope to sign contracts with companies that will order large fleets.
With a 50 kWh battery, the little Tesla can travel 350-370 km and will compete with cars like the Volkswagen ID 3, Kia e-Niro or Nissan Leaf.
Obviously, such a model will be produced in China, a country that builds electric cars at the lowest prices, has a very good supplier system and cheap labor. Tesla has a large factory in China.
Musk’s plan was for Tesla to start with the most expensive cars, and it did, with Roadster models more than 10 years ago priced around $100,000. Years passed before the Model 3 was released, promised a starting price of $35,000, but several thousand dollars more expensive.
On the more expensive cars, Tesla’s profits are higher, and the company could not start with the cheapest models, but these cheaper cars can only be released after Tesla’s production reaches very high volumes. In terms of volume, Tesla has indeed come a long way, with a total of 1.3 million vehicles produced in 2022.
Sources: Autocar UK, Teslarati, Forbes, CNBC
Photo source: Dreamstime.com
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.