tesla sells as many cars as it can make which is why it is topping charts everywhere however elon musk the ceo wants to sell even more this is why he's pushing hard for the 25 000 tesla car however a far cheaper tesla ev is on the way join us to examine how elon musk's five thousand dollar electric car is happening there has never been a better time to be tesla when your company leads in a revolution in the global transport industry you can't help being happy undoubtedly tesla deserves all the accolades prestige and money it is earning being the company that literally bet its existence on electric vehicle acceptance inspired by the daring nature of its ceo tesla put everything on the line to ramp up the production of its first mass-market model the model 3 the car would go on to clinch the position of best-selling electric vehicle in the world due to its more affordable price decent features and performance the model 3 continues to pull in impressive numbers it has convinced lots of people to switch to electric and continues to be responsible for the latest stellar performances by the company one of its many honours is being the first electric vehicle to top the european market model ranking beating out competitors from established brands even with internal combustion engine vehicles accounted for due to the strong performance of the model 3 and the model y tesla now leads the bev market with almost a quarter of all sales followed by powerhouses like volkswagen group stalantis and hyundai kia don't forget that the model 3 single-handedly landed tesla in the trillion dollar companies club when news got out that hurts but ordered 100 000 units of the electric sedan while doubt and counterclaims from musk seem to have dampened the success story the model 3 will retain an important spot not only the history of tesla but the history of the electric vehicle altogether with the impact the model 3 has had on tesla the company knows the importance of an affordable electric vehicle in its lineup however musk has always recognized the importance of cheap electric cars in the evolution of the transport industry and human history in general and you know there's an important point about tesla which is whenever somebody buys the the tesla roadster even though it's a hundred thousand dollar 109 000 uh sports car and it's kind of a fancy sport car every penny that tesla makes goes into development of lower cost mass market vehicles so the company doesn't issue any dividends nor will it ever my salary is minimum wage this is why they feature prominently in his electric vehicle master plan musk's master plan is among the simplest and clearest which explains why tesla has been able to stick to it all along the plan is to create a low volume car which would necessarily be expensive use the money to develop a medium volume car at a lower price then use the money from the medium volume car to make an affordable high volume car the roadster set things in motion for tesla with its high cost of planting it in the luxury range it managed to create a good impression about tesla's capabilities showing a production electric vehicle that could last more than 200 miles on a single charge accelerate from zero to 60 miles per hour in less than four seconds attain 125 miles per hour and even achieve high efficiency rating even though the roadster made some money for tesla it didn't sell up to 2500 units but it lived up to its expectations next came the model s which enjoyed critical acclaim for its design and performance it even lasted longer than the roadster per charge and offered storage space at the back by putting the battery underneath the floor the move also improved the handling due to the low centre of gravity this model was more mass-market than the roadster as it cost less and it represented the next step in musk's master plan the crossover model x would follow with its gull wing door but it was the model 3 that kicked off the last phase of the master plan for the first time working working-class citizens could dream of owning an electric car that they could afford and would not be crap or ugly musk however has realized humanity needs an even cheaper electric vehicle before mass adoption of electric cars would really start musk arrived at a threshold price for this car candidate but before we go into that there is another reason musk wants to make a cheap car musk realizes lots of folks are priced out of owning tesla cars given their current prices however it has never been his plan to make cars for the elite in the society as electric vehicles should be for all musk's goal is to combat environmental pollution through zero emission cars so the more people that can drive evs the better as far as he is concerned why does tesla exist why why are we making electric cars why does it matter it's because it's very important to accelerate the transition to sustainable transport this is this is really important for the future of the world the ceo even welcomes evs from competing brands as each battery-powered car means another ic off the road which is a win for the environment so despite having a more affordable model 3 musk still wants to make a cheaper electric car that will sell globally for years musk had talked about making a 25 000 car but it proved elusive even the model 3 that debuted at 35 000 has gradually crept up in price the biggest culprit is the battery which is the most expensive component in an electric vehicle even though the prices per kilowatt hour have fallen in recent times the battery remains a financial constraint no matter how much musk wants to make an affordable car tesla has to make a profit to keep in business however as we shall see tesla is working on the battery angle as well but musk has shifted his strategy in making his 25 000 ev by moving the research and development to china production will also take place in china from where it will be exported globally while musk refuses to confirm the existence of the cheap car even denying the model 2 name that the internet has adopted reports indicate the company is making lots of progress on the model 2 in china according to reports from china the model 2 prototypes are ready and tesla is even working on the production facility now if you can make an affordable electric vehicle starting from an expensive model why stop at the 25 000 mark why not go lower this is the question morgan stanley analyst adam jonas is asking the industry observer is looking forward to a 5 000 electric vehicle and he would not be surprised if tesla produces it is a 5 000 tesla car feasible before we answer that question another important question is is there an appetite for a five thousand dollar electric car in other words will people buy and use an electric car that costs five thousand dollars only this question is necessary because at the five thousand dollar price point manufacturer will obviously have to sacrifice some features or capabilities so it is critical to determine if buyers will be okay with what a 5 000 electric vehicle offers to answer that question look at no further than the wuling hongwang mini ev made and sold in china by consortium that involves general motors this cute little electric four-seat hatchback costs less than five thousand dollars and yields 105 miles per charge it has a single front-mounted electric motor that outputs 17.4 horsepower and 62.7 pound-feet of torque the top speed of 62 miles per hour you won't find flushed door handles or a glass roof on this humble hatchback however how is it doing sales wise ev is flying off the shelf almost 50 000 units were sold in october alone so a 5 000 tesla vehicle will find its audience even though it might not overlap with the demographic that buys suvs now back to can tesla make a 5 000 car interestingly if we are to list the companies that can pull this feet off tesla is firmly among them what makes tesla capable analyst jonas highlighted two advantages tesla has that can allow it to chip away at the price until it arrives at five thousand dollars the first advantage is manufacturing efficiencies which have an effect on high volume electric vehicle production this is a point musk himself often alludes to as he boasts tesla will end up having an engine manufacturing with all the technical capabilities it is acquiring this is why tesla prefers to handle as much of its production in-house as possible for example tesla has the advantage of its giga presses that simplifies production and reduces production time significantly there are rumors that the model 2 chassis will be made from a single piece this production expertise might be the key ingredient for the five thousand dollar car the second advantage tesla has is the battery the company is far ahead of the rest of the industry with its new 4680 battery another analyst tripp chowdhury estimates tesla's battery tech might have reduced the price per kilowatt hour by 56 percent and production costs by 69 let us know what you think the 5 000 tesla electric car in the comments below
Comments
Post a Comment