Tesla says it will cut car costs in half next generation

Detroit –

Tesla says it will cut the cost of its next-generation cars in half, primarily using innovative manufacturing techniques and smaller factories.

CEO Elon Musk and other executives outlined their goals as they unveiled the company’s third master plan during a three-and-a-half-hour investor presentation Wednesday at Tesla’s Austin, Texas headquarters. .

This change could bring the cost of the new generation vehicle to about US$25,000. Many investors had hoped to get a glimpse of the next-generation car, but Musk said it wouldn’t be public until the right product was announced.

“If I answer your question, I’ll fly the gun,” he told analysts of the new car.

Tesla shares fell nearly 6% in after-hours trading during the presentation, which ended shortly after 8 p.m. ET.

Musk has announced plans for Tesla to build a new factory near Monterrey, Mexico. He said Tesla won’t be taking production from other plants it expects to ramp up production. said to be.

Franz von Holzhausen, head of design at Tesla, said the company will need to cut costs even further to reach its ambitious target of producing 20 million electric cars a year. Tesla expects to produce 1.8 million units this year.

The company builds cars in smaller modular units and combines those units, he said. The system uses less space. As a result, the company’s next electric powertrain plant will be half the size of the one Tesla just built in Austin, cutting costs he said by 65%.

“This also means we can build more factories,” said Tom Zhu, who heads Tesla’s manufacturing division.

Chief Financial Officer Zachary Kirkhorn said it cut costs in half between the early Model S and Model X and the second-generation Model 3 and Model Y. We plan to do the same with the next generation, but we also plan to improve the car at the same time. , He said.

“As we improve affordability, more customers will have access to our products,” he said.

Musk said demand for Tesla cars is high, but many people who want them now can’t afford them.

Management says that everyone involved in designing and building a vehicle is in the same room, which sets Tesla apart from other automakers. The company also designs and manufactures many components and software, some of which rely on a hierarchy of component suppliers.

The company also said it had opened 10 supercharger stations to other electric vehicle owners as of Wednesday. It will also offer an unlimited home charging package for US$30 per month in Texas powered by wind power.

Kirkhorn said the new master plan includes product advancements, rapid volume growth and technological advances.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button