Elon Musk has finally dropped the details of its plans to take on cut-price Chinese electric cars from BYD and MG, promising production of a $45K Tesla will kick off in the first half of next year.
But it's not all good news. Musk's comments seem to suggest the long-touted Model 2 project has been scrapped, with Tesla's boss saying that, while a US$25,000 Tesla was coming, it would take the shape of the Cybercab, and wouldn't have a steering wheel.
But if you're waiting for a cheaper Tesla that you can actually drive, Musk had good news, promising a Tesla would go into production next year that would cost less than US$30,000 ($45,000), albeit with the help of US Government incentives.
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BYD's answer to the Toyota LandCruiser 300 Series and Nissan Patrol, the Yangwang U8 full-size hybrid SUV, caught in right-hand drive hinting at an Aussie market assault
Currently worth up to US$7500 for vehicles that are made in the USA, that could see the new Tesla cost up to US$37500, or more like $56,000 in Australia.
Interestingly, you can already buy a Model 3 here for $54,900 before on-road costs, or a Model Y for $55,900 before on-road costs, so for the new model to make an impact here it would need to be much closer to the $45,000 mark.
Depending on where Tesla can price the vehicle in our market, that would put the new model on a collision course with a heap of Chinese electric vehicles from BYD and MG amongst others, or – at the higher end of that price window – with the just-launched Kia EV5.
The news was spilled by Musk on an earnings call today, and was reported by US industry bible Automotive News.
Today's news flow neatly into news already reported by CarsGuide that Tesla had abandoned the Model 2, and was instead deliver new and cheaper models will use the Model Y's platform.
Better still, there could be two new models next year, with some analysts telling Automotive News that they expect to see stripped-back models of both the Model 3 and Model Y.
"The lower-priced variant of the Model Y will begin production in April 2025," Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told Automotive News.
"While the starting price is said to be under US$30,000, significant differences between it and the Model Y, such as range and interior space, will be needed to not siphon off sales from the popular — and more profitable — Model 3 and Model Y."
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