Elon Musk, CEO of Tesla, during an interview with Munro Live on Youtube about the Cybertruck, has confirmed about Tesla’s new low cost electric car.
This confirmation represents Tesla’s foray into a market segment that has been largely untapped by them. It also marks an important shift in their strategy, focusing on making electric vehicles more accessible to a wider audience.
|During the interview, Elon Musk said, “We are working on a low cost electric vehicle that will be made in really high volume. We are quite far advanced in that work. I review the production line plans for that every week. I think that the revolution in manufacturing that will be represented by that car will blow people’s minds.”
Advanced Production Technology
“It is a level of production technology that is far in advance of any automotive plant on Earth.” The new car production line that will be incorporated by Tesla is highly advanced and significantly aims at reducing their EV manufacturing costs.
The primary goal of their new manufacturing approach will be to produce EVs at a high volume and low cost. Their main aim would not only be to make electric vehicles accessible to a much wider audience than ever before but also to break the price barrier. By doing so, Tesla would expand its market reach as well as contribute towards a more advanced future.
Location of Production line
He also stated that the first product will be here in the Gigafactory in Texas, thus confirming the low cost vehicle’s production line up. It would be first deployed at their Texas Gigafactory and then later expanded to their Mexico Gigafactory.
These locations are favorable as they would provide easy access to major markets and key supply chains within the United States, facilitating efficient distribution.
The introduction of this low cost electric car will be a game changer not only for Tesla but for the entire automotive sector. This move by Tesla can significantly disrupt the automotive industry. Tesla is determined to reduce the dominance of traditional internal combustion engine vehicles by offering affordable EVs on a large scale. Other automakers in the industry will be forced to accelerate their shift towards electric vehicles as a result. This could in turn lead to a faster adoption of EVs globally, changing the EV industry completely.