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Tesla’s low-cost Model Y coming soon

Tesla’s low-cost Model Y coming soon

Tesla plans to launch a low-cost model Model Y with an annual production capacity of up to 4 million units, half of which will be produced in North America and the other half will be split equally between Germany and China.

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Tesla CEO Musk revealed in 2020 that the company was developing autonomous battery technology to make a $25,000 self-driving electric car possible. In March, Lars Moravy, Tesla’s chief engineer, also said the company wanted to build the “next generation” of cars at half the cost of the current Model 3 or Model Y.

If Tesla cut its current costs in half to produce the car, it would mean that the price of the new product would drop to 150,000 or less. However, the report said, depending on the construction schedule of the factory, the mass production of the “150,000 models” may not come soon. One source said, “It’s going to be at least another year or so.”

If Tesla can achieve this goal, it will have a huge impact on the market. Currently, most new car companies at home and abroad are still struggling to make a profit in the sub-$200,000 market. Tesla has a number of technical innovations and cost optimization means, such as streamlining the electrical and electronic architecture, the use of one-piece die-casting, self-developed chips, etc.. In particular, the Mexican factory will adopt a “Lego” style of manufacturing, significantly improving production efficiency and space utilization and reducing production costs.

Tesla’s goal is to sell 20 million electric cars a year by 2030, and this low-cost model could be the key to achieving that goal.