9:56 am, March 2, 2023
The price of buying a Tesla could come tumbling down in the coming years after Elon Musk said the outfit was working hard to reduce its costs.
Speaking at in investor day yesterday (March 1), the EV mogul announced plans to slash vehicle assembly costs by as much as 50 per cent.
He also suggested that those savings could be passed on to customers, making the next generation of Teslas more affordable than ever before.
Lars Moravy, the US outfit’s chief engineer, also told gathered investors that future vehicles will be made at half the cost of the Model 3 or Y.
The Times reports he told those present that the company would deliver lower costs by ‘snapping together’ cars at special ‘sub-assemblies’, also reducing complexity and time.
It is hoped the new set up will see Tesla build 20 million vehicles a year by 2030 – the year new ICE sales are banned in the UK.
Reacting to the announcement, Jim Holder, editorial director at What Car?, said: ‘One of the barriers to mass adoption of electric vehicles is price as EVs continue to command a premium over their internal engine counterparts.
‘Tesla’s announcement to halve assembly costs for its next-generation cars suggests this gap will soon disappear, though details of its affordable electric vehicle and its entry price remain under wraps for now.
‘What is clear is that for markets like the UK, an affordable electric vehicle with efficient battery technology is key if the 2030 and 2035 government targets are to be met.
‘A target of 20 million vehicles produced per year by 2030 is very ambitious, more than a 10-fold increase from Tesla’s current output, especially when considering the likes of Toyota and Volkswagen Group produce on average between eight and 10 million new cars a year each. Tesla has defied the odds before, though.’
Ross Gerber, a Tesla investor, described the presentation as a ‘huge tease’ and predicted a future Tesla could cost as little as $25,000.
Huge tease on the nex Gen tesla. It’s coming. They laid it all out. 50% less cost to build. Would get you a $25-$30k EV! $tsla
— Ross Gerber (@GerberKawasaki) March 1, 2023
Tesla currently only makes four models, with the long-awaited Cybertruck finally set for release later this year.
Despite all being priced at the premium end of the market, Musk caused major ripples in January by slashing the price of new Model 3 and Y vehicles.
That decision caused used Tesla prices to tank, as explained to Car Dealer by valuations experts Cap HPI.
Earlier this week it was announced that the firm is to build a new factory in Nuevo León, Mexico, which will be first outside the United States, Germany and China.
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
