The Future of Tesla: A $19,000 Model?
Introduction: Why Tesla’s Objective is to Expediate the Transition to Renewable Energy
Tesla, the electric vehicle company created by Elon Musk, has long been committed to providing a low-cost electric automobile as part of its objective to expedite the transition to renewable energy. In this article, we will explore the possibility of a new Tesla Model costing under $19,000 in the United States and the various dominoes that have led to this optimistic prediction.
Elon Musk’s Master Plan and Tesla’s Product Line Expansion
Elon Musk’s master plan for Tesla includes building a low volume, expensive automobile, using the money to build a medium volume car at a reduced price, and finally utilizing the funds to build a more cheap high volume car. Towards the end of section 2 of Musk’s master plan, one of the primary goals is to expand the electric vehicle product line to meet all important segments. Tesla aims to, and in some cases already is building, a wide range of vehicles that includes electric semis, pickup trucks, crossovers, vans, and hatchbacks.
The Mysterious 25,000 Tesla Passenger Vehicle Hinted at on Battery Day
At the end of Battery Day, Tesla briefly mentioned the potential for a $25,000 Tesla passenger vehicle. Elon Musk expressed confidence in the company’s ability to design and build a compelling $25,000 electric vehicle. Musk claimed that their goal has already been to create a really affordable electric vehicle and that they could probably manufacture a fully autonomous $25,000 Tesla in roughly three years, which would have been September 2023 at the time.
Tesla’s Shanghai Gigafactory and the New Model 2
Tesla was rumored to be developing a car in China for global sale over a year ago in early 2020. Last month, an official government report from the Tesla Shanghai Gigafactory stated that Tesla is definitely aiming to add a new cheaper version that would be designed and developed at the Shanghai site as soon as 2022. With China being the world’s largest market for electric vehicles, virtually all EV startups benefit from considerable government assistance. Moreover, Tesla’s Gigafactory in Shanghai boasts a high level of production efficiency as well as a low supply chain and labor costs. The aim for Gigashanghai is to create the Model 3, Model Y, and now, this new incoming Model 2 compact hatchback, with an annual production capacity of 500,000 vehicles. With Gigashanghai’s speed and efficiency, and the fact that Tesla produces the Model Y ahead of time last year, it’s not unreasonable to expect the new Tesla Model 2 to arrive much sooner than projected.
Rumors, Potential Timelines and Groundbreaking Possibilities
In a recent interview with the Chinese media site, Tesla’s China president, Tom Zhao, indicated that the next $25,000 Tesla car will be created with China in mind but aimed globally. According to him, work on a local research and development center is already underway, and the facility will handle everything related to the new Tesla model, including vehicle design, engineering development, and testing. A rumored timeline appeared on Chinese media website It Homes a few days ago indicating that the new Tesla model was accepted in September, product certification is due next month, and the first deliveries are scheduled for next year. While there is no verified timeline, we do know that Tesla China is definitely working on a new compact hatchback vehicle that will cost around $25,000 and be significantly smaller than Model 3. The car will use lithium-ion phosphate batteries which are the cheapest and least energy-dense of the three battery categories. This backs up the premise of the car being more inexpensive. It should also have a range of 200 to 250 miles. We also know that CATL, Tesla Shanghai’s battery manufacturer, just spent $6 billion in lithium-ion battery capacity expansion. The Model 3s in China are already employing the same battery chemistry, which backs up the rumor that the car will be produced and delivered by next year. We also know that the new model will first be available in China before being introduced to the United States.
The Potential for a $19,000 Tesla
If and when the new Tesla Model arrives in the United States, certain customers may be able to get it for as little as $19,000 if the new EV tax credit law passes. The Democrats have presented the Green Act, which would alter the federal EV tax incentive scheme. If the bill is passed, it could award Tesla with a $7,000 tax credit for every 400,000 extra vehicles sold in the United States. Assuming some year-over-year improvements in Tesla’s U.S sales, we can estimate that if the Green Act is passed, Tesla will likely receive a $7,000 tax credit for a complete calendar year covering 400,000 vehicles sold in the US. With Tesla’s needed documentation and delivery fee, which is presently twelve hundred dollars, the cost drops to $19,200. While there is no verified timeline, we do know that based on what we’ve heard from the official Tesla China division, they are definitely working on a new compact hatchback vehicle that will cost around $25,000 and have a significantly smaller size than Model 3.
Conclusion: A Potential Game Changer for the Industry
In conclusion, while there are many “ifs” and nothing is guaranteed or verified at this time, many signals point to a viable option of a new Tesla Model costing under $19,000 in the United States. This would make it a big success and a huge slap in the face to gasoline vehicles, particularly when compared to other similar compact hatchbacks in the same price range as the Toyota Corolla. If and when the new Tesla Model arrives in the United States, it will be a game-changer for many gas automobiles, of all, for $25,000, the base Tesla Model 2 will be just that simple and minimum. However, upgrades like complete self-driving or different paint colors will cost more.