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Tesla is determined to extend its dominance in the world of electric vehicles (EVs) and CEO Elon Musk knows a diverse product range, including a more affordable EV may hold the trump card. While he had previously confirmed that a product that is more affordable than the current most affordable Tesla Model 3 would be ideal, he has now also revealed some key information about this smaller EV.
Tesla is working on the new EV that, Musk says, would cost half as much to manufacture as the Model 3. He also confirmed that this product would mostly operate in an autonomous mode but that is till where he would go, not sharing any timelines. But even these two crucial bits of information are quite significant considering Musk had only recently also stressed on how Tesla EVs are desirable by all but not affordable for many.
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It is this focus on affordability that would be important for Tesla as it looks to crack newer markets as well as fulfil its ambitions of 20 million EVs each year by 2030. The US EV giant has been hunting for new production sites and is reportedly closing in on a deal with Mexican authorities for what is touted as the world's largest EV factory. Musk had also said that there are enough reasons to have a Tesla EV at around $25,000 (approximately ₹20.52 lakh). At present, Tesla Model 3 is the cheapest from the company at around $43,000 (approximately ₹35 lakh). The company has announced several price cuts in the US, Chinese and other markets to further woo potential buyers, prompting many rivals to also follow on a similar path. But to crack new markets, especially those in developing countries, Tesla will have to keep a close watch on its pricing structure and in this sense alone, the upcoming small EV would be crucial.
(With inputs from Reuters)