Yesterday Musk revealed that thanks to their new battery design which reduces costs and increases range, and their constant focus on improving manufacturing efficiencies, Tesla will be able to offer a $25,000 USD ($32,000 CAD) car within 3 years.
“We’re confident we can make a very, very compelling $25,000 electric vehicle, that’s also fully autonomous. And when you think about the $25,000 price point you have to consider how much less expensive it is to own an electric vehicle. So actually, it becomes even more affordable at that $25,000 price point.”
One of this biggest talking points about barriers to electric vehicles (EVs) adoption is the current high price point. What many people fail to take into consideration is the much lower fuel and maintenance costs over the life of the vehicle, which more than offset the extra initial expense.
As Musk points out, a Tesla at a price point of equivalent of less than a equivalent internal combustion engine (ICE) car would make it a no-brainer to go electric and help accelerate the world’s transition to sustainable energy.
Rumours of a new, cheaper Tesla have been circulating for a while after CEO Elon Musk announced plans to create a Chinese design center that would come up with an entirely new car for worldwide consumption.