I explain why the next generation Tesla will be MUCH less expensive than expected and how Tesla can do this.
Below, I explain why the next generation Tesla will beless expensive than expected and how Tesla can do this. We know Tesla sells the Model 3 for under $40,000 in China today, and it has a project code named Highland to. This will get the Model 3 below $35,000, which is $27,500 after the tax credit.
As my friend Warren Redlich mentions above at the 1 minute mark, Elon clearly stated a couple months ago during the Q3 2022 Tesla Earnings Call that they are working on a smaller next-generation vehicle which will be about half the cost of the Model 3/Model Y platform. Existing estimates of the Model 3 are thatto make now . Elon mentions a 2-for-1 target and half the effort and half the floor space many times .
If Tesla sells that car at $20,000, it makes a 20% margin, which is fine . Warren has a bunch of ideas on how they get the price down. Most of his ideas are things Tesla is already doing with the Model 3 and Model Y. I have some more radical ideas to get there.because it won’t need a half a billion-dollar paint shop. Tesla specifically said they will use what they learned making the Cybertruck on their next generation vehicle.
Reducing the length of the wiring from 1500 meters to 100 meters. Tesla had hoped to implement this innovation in the Model Y, but Tesla engineers talked Elon out of it in order to get the Model Y out early instead of delaying it to add many new features like Tesla did with the Model X.
Tires and wheels. Warren mentions smaller wheels and tires at about 9 minutes in his video. Researching wheels on Amazon showed that you can get a