In a recent revenue call, Tesla CEO Elon Musk announced plans for a more affordable electric vehicle, confirming that a stripped-down version of the Model Y is in development and expected to go into production in the second half of 2025. This move aims to attract customers who desire a Tesla but can’t afford the current models. Musk emphasized that while the demand for cars is high, financial barriers exist for many consumers.
The new model has generated speculation, especially following the cancellation of the previously anticipated “$25,000 EV” termed “Model 2.” Instead, the focus has shifted to a budget-friendly version of the Model Y. Suggestions from readers on how to reduce costs include using fabric seats, eliminating premium features (like mood lighting and HEPA filters), and simplifying the vehicle’s design.
Concerns arise over how reducing features may impact Tesla’s ambitions for autonomous driving, particularly if essential components like cameras and software are altered. The most significant cost-saving potential lies in the vehicle’s battery, with plans to use low-cost lithium iron-phosphate batteries sourced from China.
Overall, responses have highlighted skepticism about the feasibility of delivering a meaningful price reduction without compromising the vehicle’s quality and functionality.
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