Elon Musk wants to produce Teslas half the price

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For the electric car to be adopted by more people, it is not only necessary to install more charging stations and to speed up the charging time (5 minutes, preferably), this type of vehicle must also cost less. And as far as Tesla is concerned, it is already developing its next platform, which could allow a significant reduction in the company’s costs.

As you know, Elon Musk’s company recently released its quarterly results. And during the traditional conference call, the CEO answered a question about the next generation of autonomous vehicles as well as the costs.

More precisely, he was reminded that Tesla’s move from its first platform with the Model S and X to the second, with the Model 3 and Y, enabled a 50% reduction in costs. Then, he was asked when the third platform might be released, and what cost reductions might result from the release of this third platform.

Yes, Tesla is already working on the next generation

Musk, at this time, cannot give a date. But he assured that at present, the development team has already finished work on Cybertrucks and Semis. Therefore, this new generation is the priority.

As for the costs, the boss of Tesla does not promise anything. But he said the company is trying to get that 50% cut again.

In his response, Musk also clarified that the model will be smaller. But, this one will exceed the production of all Tesla vehicles combined. The manufacturer will also be able to count on the experience acquired thanks to the Model S, X, 3, Y, Cyvertruck and Semi to develop the new generation.

An economy of scale thanks to the increase in production

This statement by Elon Musk is reminiscent of the recent intervention by Carlos Tavares, boss of Stellantis (PSA and Fiat Chrysler), on France Info. According to the group’s forecasts, it is from 2026 that electric cars will cost less than their thermal equivalents.

He explained during the interview that the gap between electric and thermal will disappear as production increases and the cost structure of electric cars evolves. And this will have an impact on prices.

However, the Stellantis boss also warned that the prices of electric cars are more exposed to fluctuations in raw material costs.
“What we can also anticipate is that depending on the strong fluctuations in the price of raw materials, the price of electric vehicles will also be volatile, much more than the price of thermal vehicles today”he specified.

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