Next-Gen Tesla EV Models Could Be 50% Cheaper, but There's a Catch

Griffin Davis , Tech Times 02 March 2023, 11:03 am

Next-gen Tesla EV models are expected to be cheaper; around 50% less expensive compared to the existing ones today.

Next-Gen Tesla EV Models Could be 50% Cheaper, But Here's the Catch

(Photo : Photo credit should read FREDERIC J. BROWN/AFP via Getty Images)
Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019. (Photo by Frederic J. BROWN / AFP)

This detail was shared by Elon Musk and other executives of the automaker during its recent Investor Day 2023, which happened on Mar. 1.

Once these affordable EV models arrive, there's a chance that more owners with traditional cars would transition to electric vehicles.

However, there are some things you need to know about the cheaper next-gen Tesla EVs.

Next-Gen Tesla EV Models Could be 50% Cheaper

According to Fortune's latest report, Tesla would rely on innovative manufacturing methods and smaller factories to produce cheaper EV models.

(Photo : Photo by Ethan Miller/Getty Images)
A Tesla car drives through the West Station near the Las Vegas Convention Center West Hall expansion during a media preview of the Las Vegas Convention Center Loop on April 9, 2021 in Las Vegas, Nevada. The Las Vegas Convention Center Loop is an underground transportation system that is the first commercial project by Elon Musk’s The Boring Company.

Also Read: Tesla's Unlimited Overnight Charging Costs $30 Monthly: Here's How it Works

These next-gen electric cars could be around $25,000 only. However, Musk didn't show the exact design of the affordable EVs.

The billionaire explained that they are still waiting for the proper product unveiling.

Aside from the estimated price, Elon and his Tesla executives also shared that the next-gen EVs would be manufactured at the new Mexico-based factory, which will be near Monterrey.

This is where the catch starts. Enthusiasts explained that automakers tend to build smaller vehicles in Mexico to save labor costs.

This means that the next-gen Tesla models could be smaller so that lower prices can be achieved. Aside from these, electric cars could also have fewer transistors and wires.

The next-gen Tesla EV models' batteries might also be adjusted so that they wouldn't rely too much on rare Earth metals.

Tesla Investor Day Fails to Attract Investors

The recent Tesla Investor Day event failed to attract more investors.

Because of this, the automaker's shares plunged by around 5%, as reported by MarketWatch.

One of the main reasons why this happened is the lack of specific information about the automaker's next-gen vehicles and EV finances.

"We will have a proper sort of product event, but it would be jumping the gun if we answer your questions [now]," explained Musk.

Although the billionaire provided the reason why they wouldn't share specific details of their new EVs, investors were somehow disappointed with the presentation.

In other news, a Mexico-based Tesla factory is expected to be constructed soon.

We also reported about the arrival of the new Tesla Model Y called Juniper, which is expected to be manufactured in 2024.

For more news updates about Tesla and other giant EV makers, always keep your tabs open here at TechTimes.