Elon Musk has addressed the anticipated release of a budget-friendly electric vehicle from Tesla, projected to be priced below $25,000. During Tesla's latest quarterly earnings presentation, Musk reiterated that preparations are underway for new, more affordable vehicle models.
The production cost per vehicle has reached a historic low of $35,100. Musk confirmed that plans for these new cars are on track, with production expected to commence in the first half of 2025. The upcoming models will incorporate features from both the next-generation platform and existing platforms, utilizing the same manufacturing lines as current models.
Despite Musk's assertion of a timeline, he acknowledged that the exact launch date remains uncertain, reflecting the challenges in delivering on ambitious targets. The need for a low-cost vehicle is critical for Tesla as it faces competition from cheaper combustion-engine cars.