Tesla CEO Elon Musk said the automaker’s next vehicle platform will exceed Model 3 and Model Y production output, be roughly half the cost of the Model 3 and Model Y platforms, and be smaller in size.
Musk and other Tesla executives were asked about any potential developments from the next generation of Tesla vehicles. The question mentioned the dramatic drop in cost from the Model S and Model X platform to the Model 3 and Model Y platform. The Model 3 and Model Y brought Tesla’s electric vehicles to levels of mass affordability, which truly sparked the beginning of the transition to electric vehicles.
The Model 3 and Model Y are Tesla’s best-selling vehicles, accounting for 95 percent of the company’s total delivery mix for Q3, according to data from the automaker.
The retail investor asked whether Tesla’s third platform has an expected release date, along with what the company expected in terms of the total reduction in cost.
Earlier in the call, Tesla’s executives fielding questions during the Q3 Earnings Call scoffed at the idea of revealing development timelines for future vehicles and plans of the vehicle roadmap. Musk said the company was always moving forward with developments but was unwilling to give any specific details.
However, more color was offered from the Tesla CEO when he was asked about the company’s third vehicle platform.
It will exceed Tesla Model 3 and Model Y production output
Tesla Model Y production at Gigafactory Texas (Credit: Tesla)
Musk said the third-generation Tesla vehicle would be produced in quantities that outshine the Model 3 and Model Y. In fact, it would outpace manufacturing of all other Tesla vehicles combined.
This may be due to the vehicle’s size, which we’ll get to later. However, it is a true testament to Musk’s belief in Tesla’s manufacturing. With the utilization of one-piece castings, the Giga Press, and other manufacturing techniques, Tesla truly outshines many companies in terms of manufacturing efficiency. However, the company has still struggled with the build quality of its cars, which has been an issue for several years.
“Tesla will be head and shoulders above everyone else in manufacturing, that is our goal.” -Elon Musk
Tesla’s current annual production capacity is listed at roughly 1.9 million units. This figure is reflected in the Q3 2022 Shareholder Deck, which was released on October 19.
It will be roughly half the cost of the Tesla Model 3 and Model Y platform
Tesla’s goals reflected in Elon Musk’s Master Plan revealed a trickle-down pricing strategy that would ultimately see premium-priced vehicles fund projects for more affordable cars down the line. The 2008 Roadster led to the Model S and Model X, which led to the Model 3 and Model Y.
Each vehicle chapter became more affordable, helping surge the adoption of electric vehicles. Musk confirmed the next vehicle platform will be roughly half the cost of the Model 3 and Model Y, bringing up flashbacks of the rumored $25,000 Tesla.
Elon Musk unveiling the Model 3 in March 2016
Musk neither confirmed nor denied that Tesla was developing a $25,000 model during the Q4 and Full Year 2021 Earnings Call in January. However, he did confirm on the Q3 call that the next vehicle platform is “the primary focus of the vehicle development team.”
The next vehicle is also fully expected to be used as the fully autonomous Robotaxi, which is still a few years away. However, the vehicle is not likely to come within the two years, as Tesla is turning its focus to ramping Cybertruck manufacturing and Semi production, which it targets to be 50,000 by 2024.
It will be Tesla’s smallest vehicle
Musk said that the new vehicle platform would also be smaller in size, as it would also help cut the total cost of the vehicle.
However, projections of what the $25,000 model would look like are usually smaller and more compact than the Model 3.
Credit: Alwinart/Twitter
While these are not officially Tesla designs, what is illustrated above is likely a similar size to what the company will bring to the table for the $25,000 model. The cost reduction can start at the dimensions of the vehicle overall, which will cut costs significantly. However, the real reduction comes from developing new batteries and the scaling of production. Musk also detailed on the Q3 Earnings Call that he still sees a path to a potential $70 per kWh cell, which is 30 percent less expensive than the projected “price parity” number, which lies at $100 per kWh. This, in theory, would bring EVs to the same cost as gas cars.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Tesla Cybertruck trims saw a big price change, at least on two of the three available to consumers, as demand for the all-electric pickup appears to be increasing.
Tesla bumped up its Base All-Wheel-Drive trim level up to $74,990 from $69,990 and the Premium All-Wheel-Drive configuration from $79,990 to $84,990. The Cyberbeast price remains unchanged at $99,990.
🚨 Cybertruck prices went up as Tesla bumped them 7%
– Tesla Cybertruck AWD is now $74,990
– Tesla Cybertruck Premium AWD now $84,990
– Tesla Cyberbeast now $99,990 https://t.co/MYJbaw56GL— TESLARATI (@Teslarati) August 25, 2026
Despite questions of demand for the truck, Tesla is bumping its two least expensive trims up $5,000 to signal that there are plenty of buyers. Although SpaceX has been buying Tesla Cybertruck units to utilize as company vehicles, it is no secret that the Cybertruck is among the most sought-after Tesla models out there.
The issue has always been pricing, at least for the most part. When Tesla initially launched the Cybertruck AWD at $59,990 a few months back, the company stated that price would remain intact for just ten days due to the influx of orders it received.
Cybertruck Sales: Is It the Product or Pricing?
Depending on who you ask, you will likely hear one of two explanations for relatively low Cybertruck sales: either the product itself or the pricing.
Yes, this is the best-selling all-electric pickup on the market. However, there are people who simply hate the look of it, which I understand, but do not agree with. Look is totally subjective, and I love the look of the Cybertruck.
Some people will not buy the Cybertruck because of the look, but I am under the impression that sales would be much better if this truck were priced lower; something that might not be possible considering Tesla’s need to make money on its products. When it was unveiled in 2019, its most expensive trim level was $69,990. Now, the cheapest trim level is more expensive than that.
I would be in a Cybertruck if it were more affordable. I LOVE my Model Y, but Cybertruck is the best vehicle Tesla makes, and it’s not particularly close. Even in the base model, the steer-by-wire, the space, storage, and performance make it more desirable than the Model Y to me. I cannot be the only Tesla owner without a Cybertruck who feels this way.
If you’re interested in buying a Tesla vehicle, use my referral link.
Energy
Tesla Semi factory is getting a celebration nobody expected
Tesla will inaugurate its Nevada Semi factory September 24, five months after production quietly began ramping.
Tesla says it will officially inaugurate its new Semi factory in Nevada next month. The Tesla Semi account posted the announcement on X, sharing a graphic titled “Semi Rollout” with a date of September 24. No further details were given about the format of the event or who would attend.
While Tesla’s dedicated Semi plant in Sparks, adjacent to Gigafactory Nevada, opened back in April, with the first trucks rolling off the high volume line on April 29, the timing for the factory inauguration comes at a surprise. The ribbon cutting event five months into production is a break from how Tesla has usually handled its other factories, where the first truck or car off the line typically served as the milestone moment.
Inauguration of new Semi factory in Nevada next month pic.twitter.com/a8kAlxrOOn
— Tesla Semi (@tesla_semi) August 24, 2026
The 1.7 million square foot factory was built as part of a $3.6 billion expansion Tesla announced in early 2023, and it shares a site with the battery cell lines that feed the Semi’s structural pack, a decision meant to remove the supply bottleneck that delayed the truck for years. The plant is designed for 50,000 trucks a year at full ramp. Semi program director Dan Priestley has said production “is now ramping” rather than claiming it has reached scale.
Nine years passed between the Semi’s 2017 unveiling and this stage of production, with the truck slipping from an original 2019 target through hand built pilot units for PepsiCo and a slow build out of the Nevada plant. An inauguration event now gives Tesla a stage to talk up that ramp and reset expectations for how many trucks it can begin delivering at scale.
The September date also lines up with the Semi’s next milestone. Tesla confirmed the truck is heading to Europe with a full unveiling at the IAA Transportation trade show in Hannover, Germany, running September 15 through 20. Between the Nevada event and the Hannover reveal, Tesla has roughly a week and a half in September to make the case that the Semi is now a truck being built and sold on two continents rather than tested in a handful of fleets.
Elon Musk
Elon Musk just set a condition that could end Falcon 9 as we know it
Elon Musk says SpaceX will finally retire Falcon 9 once Starship flies reliably every week.
Elon Musk gave the clearest timeline yet for retiring Falcon 9, SpaceX’s workhorse rocket.
The comment came in a reply on X, where Musk wrote that “once Starship is flying reliably several times per week, it makes sense to shift super scarce SpaceX engineering and production resources to Starship to get launch rate to several times per day, which means winding down Falcon.” He was responding to physicist Casey Handmer, who noted that NASA is reportedly uneasy about SpaceX phasing out Falcon after building what Handmer called the most successful launcher ever, with the fleet nearing 1,000 total launches.
Now @SciGuySpace reports NASA is in a tizzy because after running the most successful launcher ever for more than a decade and nearing 1000 launches, @SpaceX is planning to retire Falcon in favor of Starship in a few years.
Sorry, NASA, you’ve had 15 years to burn down the… https://t.co/uCNoMwK0v9
— Casey Handmer (@CJHandmer) August 22, 2026
Falcon 9 is still SpaceX’s busiest vehicle by far. The company is on pace for roughly 140 to 145 Falcon flights this year, following 165 in 2025, president Gwynne Shotwell told Time earlier in 2026. She has already said Falcon flights would “tail off” as Starship comes online, while reports indicate that SpaceX has stopped booking new Falcon 9 launches past 2028 and halted production of some expendable Falcon hardware, according to Bloomberg.
It’s worth noting that Musk’s post is a condition, and not a countdown on when Falcon will retire. Starship has not yet flown weekly, let alone daily. Its most recent flight in July ended with a soft splashdown in the Indian Ocean, a milestone Musk pointed to earlier this month when he said the vehicle’s heat shield problem was effectively solved. SpaceX towed that ship to Christmas Island for inspection, and the next flight, Flight 14, is aimed at putting Starship into orbit for the first time. A tower catch attempt for the upper stage has been pushed back to what Musk has called “a few months” away.
SpaceX and a new Trump order that could rewrite the next decade of launches
The gap between Falcon’s role today and Starship’s promised role tomorrow matters most to NASA. Falcon and its Dragon capsule remain the only way the agency rotates astronauts to and from the International Space Station, and Starship is not certified to carry NASA crews. Musk’s post did not address how that handoff would work if Falcon winds down before a crew-rated Starship variant exists. The timing lines up with Musk’s other recent Starship comments. Two days before the Falcon post, he told a different X user that SpaceX is aiming for more than 30 Starship launches a day by 2030, or roughly 10,000 a year, a figure tied to the Trump administration’s new push for higher national launch cadence. Falcon, which took over a decade to reach its first 100 launches, was never built to approach that kind of volume.
For now, Falcon 9 keeps flying at a near-record pace while Starship works to prove it can do the job Musk has already picked out for it.
Tesla just made Cybertruck more expensive
Tesla Semi factory is getting a celebration nobody expected
