Elon has plans. Not just to dominate the auto industry, but also to settle Mars, become a dominate cellular company, become a dominate cable company, and more.
Elon Musk, the CEO of Tesla, continues his pursuit of making electric vehicles more affordable. Speaking at the 2024 Annual Stockholder Meeting, Musk speculated on the impact of a cheaper Model Y, suggesting that a price tag under $20,000 could lead to sales of around five million units. Although this price point is currently out of reach, Musk emphasized the importance of reducing costs to change the game in vehicle affordability.
Musk’s commitment is clear: “For most people, it’s not a question of whether they want a Tesla, they simply can’t afford one. So we have to make it affordable, that’s essential,” he explained. This initiative is not unique in the automotive industry, as efforts to produce more affordable vehicles have been a common theme among car manufacturers.
A Tesla Model Y is able to travel 33.7km (20.5mi) and consume 4.06 kWh of energy AFTER reaching 0% SoC. Quite impressive.@BjornNyland conducts these tests for many different EV’s. pic.twitter.com/4F8GsUs9cN
— Nic Cruz Patane (@niccruzpatane) June 16, 2024
During Tesla’s first quarter earnings conference call, Musk mentioned that the strategy to create cheaper cars would involve integrating features from both next-generation platforms and current models. These more affordable vehicles would be produced on the same manufacturing lines as existing Tesla models. AutoForecast Solutions’ June commentary noted that the budget-friendly vehicle might be a scaled-down version of the Model Y.
Sam Fiorani, an analyst at AutoForecast Solutions, acknowledged the public’s desire to own a Tesla but pointed out the financial challenges the company faces. He explained that Tesla’s current profit margins are lower than many traditional automakers, which limits the scope for significant price reductions. Fiorani suggested that a $20,000 Tesla would require “substantial compromises” in features and capabilities. However, he remains optimistic about the rapid advancement of electric vehicles, predicting that today’s EVs will soon become outdated as newer, more sophisticated models emerge.
A dream come true to visit the beautiful Tesla Giga factory! The place is massive and still not finished! The factory tour was awesome, we got to see Cybertruck and Model Y production lines in action. People on the floor smiling and saying hi to us was great! Beautiful, clean… pic.twitter.com/4LCQPadg5T
— Lily Raven (@Lilyravenphotog) June 14, 2024
In efforts to make Teslas more accessible, the company has introduced more affordable leasing options. For example, a Tesla Model 3 can now be leased for $299 per month with a down payment of $2,999, excluding taxes and fees. This pricing strategy puts Tesla’s vehicles within a more competitive range with traditional gasoline cars, like those from Honda, making them more attainable for a broader range of consumers. This is part of Tesla’s broader strategy to not only lower the upfront purchase price but also to make owning a Tesla more feasible for the average consumer.
Major Points
- Elon Musk discusses the potential of a cheaper Tesla Model Y under $20,000 at the 2024 Annual Stockholder Meeting, envisioning massive sales.
- Musk emphasizes the need for affordability in Tesla’s lineup, acknowledging that the current prices are beyond what most consumers can afford.
- Musk hints at using both new and existing technologies and platforms to reduce costs and produce these affordable vehicles on the same lines as current models.
- Analysts suggest a $20,000 Tesla would come with significant compromises but remain optimistic about the rapid advancement and future improvements of EVs.
- Tesla is already making strides toward affordability with competitive leasing options, making their cars more accessible compared to traditional gasoline vehicles.
Kirk Volo – Reprinted with permission of Whatfinger News
