Musk confirms low-cost Tesla is in advanced stages of development

  • In an interview with Munro Live, Tesla CEO, Elon Musk, has confirmed that the cheapest Tesla yet, likely with a sub-$30k price tag, is in advanced stages of development.
  • This low price will partly be achieved by selling high volumes of the new model, with Musk calling the new model a “revolution in manufacturing”, and the production line being “far in advance of any automotive plant on earth”.
  • It will initially be built at the company’s Gigafactory in Texas. However, Musk also revealed that a second production line will be opened for the budget EV in Mexico, which would be Tesla’s first manufacturing facility within the country.

This new information on production location is in addition to a report from Reuters just last month, which claimed that a new budget Tesla would be built at a factory near Berlin. This increasingly hints to a car that will be available globally, with local production facilities keeping transportation costs down. During this short interview, a target price point for the new model was not divulged. However, the Model 3 starts at around $39,000 in the US, and previous rumours pin the entry level model at a starting price of just $25,000 – equivalent to around £20,000.

Competition against this car will vary depending on where it’s sold. In China, the new Tesla will have its work cut out in proving itself against the multitude of budget rivals from brands such as BYD and MG, while the increasing number of budget options in Europe will also be a challenge. Meanwhile, in North America, Tesla getting its new model priced lower than the continent’s cheapest EV, the Chevrolet Bolt, would be a remarkable achievement.

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