Tesla has found the ‘cheap’ electric car elusive to make. However, the automaker might have found a solution: simply strip back the Model 3 and Model Y.
Tesla suggested the approach to EV affordability at its investors’ call when the executives were quizzed directly about the matter. In response, VP of vehicle engineering Lars Moravy said the affordable cars would look like existing models, “And so, the models that come out in next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And here the key is that they’ll be affordable, and you’ll be able to buy one.”
Moravy’s colleague, Vaibhav Taneja, Tesla’s chief financial officer, explained further that the less-expensive models will be produced on current production lines, “There’s always limitations when you’re using existing lines as to how many different form factors can you bring to. So that’s the way I would say you should think about it.”
Tesla can realistically achieve lower selling prices for the Model 3 and Model Y. It can, for instance, remove features such as the rear touchscreen, ventilated seats, panoramic roof, etc. It can also pare down the main touchscreen in size, use less premium sound systems, neuter Autopilot or yank it off altogether, etc. Tesla could save a few bucks on the exterior by offering the most basic paint colors.
The company’s shareholder deck revealed that 2025 still looks likely as the date the cheaper EVs will be available. The executives admitted production might have been delayed, but no major hurdles remain.
