Tesla CEO Elon Musk has been teasing the world for years with his dream of an affordable electric car, and this week his fans are expecting him to explain what he has in mind for that and what he might shell out. to create it. .
Musk said last year that he has shelved plans for a $25,000 car, known as the Model 2, and hasn’t mastered the new battery technology he said is critical to affordable cars.
Expansion into the mass market is key to meeting Tesla’s goal of increasing vehicle shipments 15-fold, to 20 million, by 2030. The automaker has cut prices in recent months to boost sales , which have been under pressure from a weak economy and growing competition.
Its shares are up about 60% year-to-date but are still halfway through their November 2021 peak.
The low-priced car is expected to be the centerpiece of Musk’s “Part Three Master Plan,” which he will unveil at an “Investor Day” on Wednesday, along with plans for factory expansion and capital spending.
Whatever Musk says about deadlines, however, will make investors wary, as he missed his most important deadlines while running the world’s most valuable auto company.
“The formula for decoding Musk is pretty simple. Take whatever time frame he has and multiply it by two,” said Gene Munster, managing partner at Deepwater Asset Management, which owns Tesla stock.
It expects the new automotive platform to be launched in 2025 at the earliest, which will still be years faster than the auto industry’s typical development of a new vehicle.
Tesla did not respond to Reuters’ request for comment.
The clues Musk offers about the Model 2 leave much to the imagination. Making an attractive $25,000 EV “has been our dream since the company’s inception,” he said in a presentation on batteries in 2020.
A recent Tesla engineering video showed a small car with signature Tesla curves that company observers assumed was a Model 2 sketch.
Guidehouse Insights analyst Sam Abuelsamid said Tesla could announce a cheaper car with a short range for the Chinese market, but an affordable, long-range car that can appeal to the North American market will likely take some time due to the slow increase your own batteries.
Source: Terra
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