On April 4th, it was reported by several industry insiders that Tesla plans to launch a low-cost model, positioned as a “small” Model Y, with an annual production capacity of up to 4 million vehicles, half of which will be produced in North America, and the other half will be split between Germany and China.
Tesla CEO Elon Musk revealed in 2020 that the company was developing autonomous battery technology to make a $25,000 autonomous electric vehicle possible. In March of this year, Tesla’s chief engineer, Lars Moravy, also said the company hopes to manufacture the “next generation” of vehicles at half the cost of the current Model 3 or Model Y.
If Tesla can cut the cost of producing a car in half, it could mean that the price of the new product could drop to 150,000 yuan or even lower. However, according to reports, mass production of the “150,000 yuan car” may not come soon due to the progress of factory construction. “It will take at least more than a year,” said one insider.
If Tesla can achieve this goal, it will have a huge impact on the market. Currently, most new car companies at home and abroad find it difficult to make a profit in the market below 200,000 yuan. Tesla has many means of technological innovation and cost optimization, such as streamlining the electrical and electronic architecture, adopting integrated casting, and developing its own chips. In particular, the Mexican factory will use a “Lego-style” production method to significantly improve production efficiency and space utilization and reduce production costs.
Tesla’s goal is to sell 20 million electric vehicles annually by 2030, and this low-cost model may be the key to achieving this goal.
Tesla has not yet responded to this rumor.
