Tesla says it's on track to produce "more affordable" vehicles in 2025
In the company's third quarter earnings report, Tesla wrote that preparations remain underway for its offering of new vehicles.
Electric cars are expensive – something that's especially true when it comes to Tesla's models. Elon Musk's firm has said for years that it plans to sell a more affordable EV, and it has now repeated claims that it will finally arrive sometime in the first half of 2025.
Background
In 2020, Tesla announced plans to launch a new EV that could cost as little as $25,000. This was seen as a major development, as it would have made Tesla's vehicles more accessible to a wider range of customers. The new EV was codenamed NV9, and it was expected to be a significant improvement over the company's existing models.
Modular Manufacturing Process
One of the key features of the NV9 was its use of a modular manufacturing process, which was designed to reduce costs. This process involved breaking down the vehicle into separate sections, which could then be assembled individually. This approach was expected to significantly reduce production costs, making the vehicle more affordable.
However, in a recent statement, Tesla announced that it was abandoning its modular manufacturing process for the NV9. Instead, the company will be using aspects of its next-generation platform, as well as its current platforms and manufacturing lines. This decision suggests that Tesla is prioritizing efficiency and scalability over cost reduction.
Design and Specifications
The exact design and specifications of the NV9 are still unclear, but it is expected to be a more compact version of the Model 3 or the Model Y. Some reports suggest that the NV9 may be similar in size to the Model Y, but with a more compact hatchback-style design.
In terms of features, the NV9 is expected to have a similar range of capabilities to Tesla's existing models, including Autopilot and Supercharger access. However, the company has not ruled out the possibility of introducing new features or technologies as part of the NV9.
Pricing
Tesla has stated that the NV9 will not achieve the same level of cost reduction as initially expected. However, the company remains optimistic about its ability to grow vehicle volumes in a more capital-efficient manner during uncertain times.
In terms of pricing, Tesla has not provided any specific details, but it is expected to be significantly lower than the average price of its 2024 models, which is currently over $63,000.
Comparison to Existing Models
The NV9 is expected to be a more affordable option than Tesla's existing models, but it is unclear how much cheaper it will be. The Model 3 Standard Range, which was recently discontinued, had a sticker price of $38,990. The Model 3 Long Range, which is currently the cheapest vehicle Tesla sells, has a sticker price of $42,490.
In comparison, the NV9 is expected to be significantly cheaper than the Model 3, but it is unclear how much cheaper. Tesla has stated that the NV9 will be a more affordable option, but it has not provided any specific details on pricing.
Implications
The introduction of the NV9 is significant for Tesla, as it offers a more affordable option for customers who are looking to transition to electric. The company's decision to abandon its modular manufacturing process suggests that Tesla is prioritizing efficiency and scalability over cost reduction.
However, the fact that the NV9 will not achieve the same level of cost reduction as initially expected may be a disappointment for some investors. Tesla's stock price has been volatile in recent years, and the company's ability to deliver on its promises will be closely watched by investors.
Overall, the introduction of the NV9 is a significant development for Tesla, and it offers a more affordable option for customers who are looking to transition to electric. However, the company's decision to abandon its modular manufacturing process suggests that Tesla is prioritizing efficiency and scalability over cost reduction.