Tesla discusses plans for next-generation vehicle

During the Q3 2023 earnings call, Elon Musk and other Tesla executives revealed some tidbits about its next-generation vehicle. 

Tesla’s next-generation vehicle is expected to be the company’s most affordable electric car yet. Tesla has been teasing a $25,000 electric vehicle (EV) over the past few years. Earlier this year, Tesla alluded to the fact that it is working on a few next-generation vehicles, but the $25,000 EV is one of its main focuses right now. 

Tesla is expected to unveil a small crossover, sort of like a mini Model Y, as its first next-gen vehicle. During the latest Tesla earnings call, Elon Musk and other executives teased the design of its next-gen EV small crossover. Musk shared that the mini Model Y would be utilitarian in design compared to the Tesla Cybertruck, which broke headlines for its rather unique shape and design approach to a pickup truck. 

“Yeah. Just to be clear, it will be cool, but it’s utilitarian. It’s not meant to, you know, fill you with magic. It’s to get you from A to B. It will still be beautiful, but it’s utility,” shared Elon Musk.

Musk added that the next-gen vehicle will be easier to ramp in production than the Cybertruck because of its design. The company is working on simplifying the vehicle’s design to “achieve a units-per-minute level that is unheard of in the auto industry.” 

Another Tesla executive noted that the next-gen vehicle would be easier to automate and cost less. 

“I mean, the single location makes it easier to automate. It also makes it lower cost. Yes, that’s intrinsically lower cost,” the Tesla executive said. 

Near the Fremont Factory, Tesla continues to use the Kato 4680 factory as a pilot production line. It is currently retooling the Kato line for its next-generation design, hinting that the next-gen vehicle will have more efficient battery cells. 

Tesla initially planned to build the $25,000 vehicle at its new gigafactory in Mexico. It is working on a new infrastructure and factory design that corresponds to the design of the next-gen vehicle in Mexico.

“For Mexico, we are working on infrastructure and factory design in parallel with the engineering development of the new production that we’ll be manufacturing there. That’s all I can share for that,” said a Tesla executive. 

However, Tesla CEO Elon Musk is concerned about rising interest rates that might affect the next-gen vehicle’s price. The company is considering starting initial production on the $25,000 vehicle in Texas instead of Giga Mexico. Although, Tesla still has plans to build a gigafactory in Mexico.

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Tesla discusses plans for next-generation vehicle
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