Elon Musk, CEO of Tesla, has made a number of bold assertions recently, but this one is very intriguing. Musk announced the next big thing during the third quarter earnings call and Q&A session: a new platform that would birth a “next-generation car” that is smaller and substantially cheaper than the existing Model 3 and Model Y.
The assumption that a new entry-level Tesla that costs half as much to construct will equally cost half as much to purchase would be premature, especially in a context when automakers are trying to claw back more profit.
Will Tesla pass these savings on to the customers? Let’s hope so. At a starting price of roughly $30,000, this new Tesla would compete with some of the cheapest new EVs on the market today, including the Model 3, which now begins at just under $50,000.
Musk claims that the new model would “surpass the production of all our other vehicles combined” and will have production costs cut by about 50 percent compared to the Model 3 and Y. These are lofty, far-reaching ambitions for a single product. This is a very ambitious sales goal, considering that the Model 3 and Model Y are currently two of Tesla’s 20 best-selling vehicles in the United States.
While Musk has been cagey about when this new platform would be released, he has said emphatically that it is the top priority of the development team. However, we aren’t holding our breath for the new affordable Tesla compact to enter the market anytime soon.