Details are still scarce, but close analysis reveals potential to disrupt the entire industry... again.
During Tesla's recent Investor Day 2023, the company made a subtle but significant announcement about its upcoming Next-Generation vehicle, which is expected to be priced at $25,000. This vehicle will be built in Mexico and is set to be Tesla's most affordable offering yet.
In a recent interview with Tom Narayan, analyst at RBC Capital Markets, he discussed the potential impact of this new vehicle on the market. Narayan believes that the vehicle could help Tesla expand its market share and increase adoption of electric vehicles worldwide.
“That's going to have huge implications on the rest of the industry,” Narayan said. “[Tesla] can come in, undercut the rest of the market. And this could be a global vehicle. It's not just penetrating the US. Now you can go after Europe, of course, China. So I actually think when you really dive into the details, ability to cut costs on chips, right, the silicon carbide by 75%. Overall manufacturing, you showed how you can change the way you make the car and cut the cost in general by 50%. I actually don't think that it was as negative. And I think people can rewatch it and come to the conclusion, yeah, a $25,000 car is coming.”
The drive unit for the future vehicle will cost around $1,000 and contain no rare earth minerals, unlike the current motor used in the Tesla Model Y. All the controllers will be designed in-house, compared to the mere 20% of the original Model S.
These updates are expected to improve performance, efficiency, and sustainability while reducing costs for Tesla. With its new, more affordable vehicle and continued innovation in technology and manufacturing, Tesla appears poised to remain a dominant force in the electric vehicle market. As Narayan notes, "Again, this $25,000 car is going to be game changing.”
Tesla's Next-Generation Vehicle: What We Know So Far
The Next-Generation vehicle, slated to arrive in 2024 (maybe...), will be the most affordable Tesla to date. Elon Musk, Tesla CEO, announced that the company has achieved significant cost reductions in battery production, which will help bring the price of this vehicle down.
While specific details on the vehicle have yet to be revealed, it is expected to have a unique design, different from the existing Tesla vehicles. The new car is expected to be a major step forward for Tesla and electric vehicles in general. The lower price point and increased accessibility could help bring electric vehicles to a wider audience, making them a more feasible and attractive option for many drivers.
The Future of Electric Vehicles
Tesla's continued innovation in the electric vehicle market is helping to drive progress in the industry as a whole. As more consumers adopt electric vehicles, other automakers are following suit, investing in new technology and expanding their electric vehicle offerings.
In recent years, several major automakers have announced plans to invest heavily in electric vehicles. It's no secret that Tesla has been the leader in the electric vehicle market for years, but competition is increasing as more automakers enter the EV space. However, with its strong brand, cutting-edge technology, and loyal cult-like following, Tesla appears poised to continue leading the way in the electric vehicle market for the foreseeable future.
What do you think? Will the $25,000 Tesla EV be the next major catalyst in the automotive market? Leave a comment below with your thoughts!