The aggressive approach of Chinese manufacturers leading the way in the electric vehicle segment has forced Tesla to go back to the drawing board and work on an affordable vehicle. After a year of will they or won’t they, at the Tesla earnings call, Elon Musk blew the lid off the new budget-friendly electric vehicle by revealing that it will be based on the Model Y, but a stripped-down version. Tesla had confirmed that the “first build” of the new model was already manufactured in June, and the mass rollout will begin in the latter half of 2025.
Musk lets the cat out of the bag
During the Tesla earnings call, an analyst asked Musk if more details of the new EV could be revealed. Musk replied, “It’s just a Model Y. Let the cat out of the bag there. Dancing cat that can talk and sing, and dance,” Musk said. “That’s the cool part.” He didn’t reveal any further details about it, but did confirm that the self-driving features will be available in the new EV.
Speaking on why the new Tesla affordable EV is the hour of need, Musk explained the biggest obstacle to getting people to buy EVs is that they “don’t have enough money in their bank account to buy it.” He added, “Literally, that is the issue. Not a lack of desire, but a lack of ability. So, the more affordable we can make the car, the better.”
Musk believes that a Tesla buyer in the U.S. will have the option to make some money, as the owner will rent out their vehicle next year. It’s been quite a long and winding road for Tesla’s new budget-friendly model. Initially, the company wanted to create a new platform, but with the underutilisation of Model 3 and Model Y production lines, Musk decided to scrap the idea. Reports suggest that the new architecture will be used for the upcoming CyberCab.
Stripped-down version of Model Y: What to expect?
Tesla has kept mum on the expected price of the new EV, but the entry-level model is expected to cost around $30,000 – $35,000, as the Model Y starts from over $46,000. Being a budget-friendly vehicle, it will have a bare-basics cabin, reduced features, and could also be packed with a new, smaller battery.
In the Q2 earnings call, Tesla’s vice president of engineering, Lars Moravy, said production has not yet begun on a mass-market level, but it’s expected to be available for everyone starting in the fourth quarter of this year.
