Gary Zhou 
Key Points
- 🚗 Tesla is working on its next-generation vehicle, expected to be its most affordable electric car.
- 💲 The company has been teasing a $25,000 electric vehicle (EV) as a major focus.
- 🚙 The first next-gen vehicle is likely to be a small crossover, described as utilitarian in design.
- 🔧 The design of the next-gen vehicle will make it easier to ramp up production and automate manufacturing.
- 🔋 Tesla is retooling the Kato 4680 factory for more efficient battery cells for the upcoming vehicle.
- 🏭 Initially, the $25,000 vehicle was planned for production in Mexico, but concerns about rising interest rates may lead to production in Texas.
- 🏢 Tesla still plans to build a gigafactory in Mexico for future production.
During the Q3 2023 earnings call, Elon Musk and other Tesla executives offered insights into the company’s next-generation vehicle.
Tesla’s next-generation vehicle is expected to be its most affordable electric car to date, with the long-anticipated $25,000 electric vehicle (EV) being a primary focus. The initial model is anticipated to be a compact crossover, resembling a smaller Model Y. During the earnings call, Elon Musk and other executives provided a glimpse into the design of this next-gen EV crossover. Musk described it as having a utilitarian design compared to the distinctive aesthetics of the Cybertruck, emphasizing its practicality and functionality.
Elon Musk also highlighted that this next-gen vehicle is designed for efficient production scalability. The company is simplifying its design to achieve unprecedented production rates, setting new standards within the auto industry. Tesla executives pointed out that its single-location production approach allows for easier automation and cost reduction.
Near the Fremont Factory, Tesla is using the Kato 4680 factory as a pilot production line. The facility is currently being retooled for the next-generation design, hinting at more efficient battery cells.
Tesla initially planned to manufacture the $25,000 vehicle at its upcoming gigafactory in Mexico. However, rising interest rates have raised concerns about the vehicle’s pricing. As a result, Tesla is considering initiating the initial production of the $25,000 vehicle in Texas, although it still intends to build a gigafactory in Mexico.
