(Patrick T. Fallon/Bloomberg via Getty Images)
After previously shelving the project, Elon Musk suggests Tesla has made strides toward developing a $25,000 version of its popular electric vehicle.
“We obviously are working on a low-cost electric vehicle that’ll be made at very high volume. We are quite far advanced in that work,” Musk told automotive engineer Sandy Munro in an interview on YouTube. “I review the production line plans for that every week,” he added. “And I think the revolution in manufacturing that’ll be represented by that car will blow people’s minds."
Back in 2020, Musk said Tesla was preparing a low-cost EV after announcing several breakthroughs in reducing battery costs. At the time, he projected the car would arrive in three years, but in January 2022, Musk told Tesla investors: “We’re not currently working on the $25,000 car. At some point, we will, but we have enough on our plate right now.”
While speaking with Munro, Musk initially declined to offer concrete details on the project, noting Tesla would have to figure out how the new vehicle would impact its earnings going forward if he did. Nevertheless, Musk teased that the low-cost vehicle will involve a new car production line that will significantly reduce the EV manufacturing costs.
“It’s a level of production technology that is far in advance of any automotive plant on Earth,” Musk said, later adding: “The first product will be here in the Gigafactory in Texas.” The company then plans on expanding production to a second facility in Mexico.
Tesla may have had to delay plans for a $25,000 EV due to the COVID-19 pandemic and the ensuing supply chain problems. In the same talk, Musk mentioned Tesla’s plans for the Cybertruck were repeatedly pushed back due to the global chip shortage.
The company has since received over a million pre-orders for the truck, which starts at $60,990 (though you only need to put down at $250 refundable deposit). But despite the Cybertruck’s launch last week, Musk told Munro he couldn’t predict the unit volume for the vehicle in the short term, only saying it’s expected to make up a small percentage of Tesla sales next year.