Tesla Executives Hint At A Cheap Electric Car

Recently, Tesla's Head of Investor Relations, Martin Wicha, was invited to attend a technology conference hosted by Goldman Sachs to present Tesla's growth plans for the next five years.

Martin Wicha began by addressing two key themes that will be critical to Tesla and the electric vehicle industry as a whole over the next five years: battery supply and technology, and vehicle manufacturing costs. He said that car manufacturing will grow as fast as the battery industry, which will affect the manufacture of batteries and battery packs, as well as battery design and the extraction of other raw materials such as lithium and nickel.

In addition, he also highlighted that the manufacturing cost per electric car will continue to fall, thanks to better car design and updated factory lines, the cost of production of the car has dropped to $36,000 (about $249,170.4) in recent quarters, it is difficult to say whether it will feed into the selling price, after all, this is a meeting of investors.

When talking about the possibility of Tesla making a cheaper electric car, Martin-Vicha said the company would eventually like to produce a more affordable electric car. He explained that if a company wants to produce more, it needs to reach more consumers. On the other hand, Tesla needs to offer a cheaper car product before its own self-driving cab service comes online.

Only, because the market demand for the Model Y/3 is much higher than expected, Tesla's motivation to launch lower-priced models has been reduced and there are no plans for the near future. Tesla has a large global demand, limited by capacity, many regions need a long delivery date, the supply of Model 3, Model Y two models have not met the demand, the short term more empty production line to produce more low-end, production requirements of the larger models.

But it is certain that Tesla intends to use cheaper models to develop its own self-driving cab business, so the entry-level Tesla models will still be available, after all, cheap models are easy to go, even if they encounter accidents, cuts and other problems, the loss will not be too high, that is, I do not know until what year and what month.

TOPCARS believes that even if Tesla is not worried about selling cars now, but the budget is not large consumer groups, they may only be able to afford a $30,000 model, which has considerable room for Tesla to grow. When the capacity is relaxed, low-priced Tesla models should be on the agenda.

About Author
John Murphy

John Murphy is the founder of TOPCARS Tesla Aftermarket Accessories, as well as an investor in Tesla and owner of the Model Y. He posts about Tesla news while running the site on a daily basis.

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