Tesla is expanding its range of electric vehicles (EVs) by offering a new, more affordable model.
CEO Elon Musk recently provided crucial details about the upcoming EV, stating that it will cost around half as much to manufacture as the current most affordable Tesla, the Model 3.
The car will also operate mostly in autonomous mode, although no timeline for its release has been provided.
Musk has previously acknowledged that Tesla’s current EVs are desirable but not affordable for many consumers.
For Tesla to achieve its goal of producing 20 million EVs annually by 2030, the company must prioritize affordability and tap into new markets.
Tesla is currently in talks with Mexican officials about constructing the world’s largest EV factory to support this goal.
In addition to affordability, Musk believes there are valid reasons to offer a Tesla EV priced around $25,000, which is significantly cheaper than the current Model 3, priced at around $43,000.
Tesla has already announced price cuts in various markets, including the US and China, to attract more buyers, and this move has led to competitors following suit.
However, the company will need to maintain an affordable pricing structure to succeed in developing countries, where many potential buyers may not be able to afford higher-end EVs.
The upcoming smaller EV could play a critical role in Tesla’s expansion plans, as it aims to provide an affordable option for consumers who want to switch to electric vehicles.
By offering a diverse range of products, Tesla hopes to establish its reign in the EV market and achieve its ambitious production targets in the next few years.