Tesla car_Elon Musk claimed that he abandoned the $25,000 Model 2 car project last year because he was still learning the new battery technology that he claimed would be essential to affordable cars.
Tesla car this week
Elon Musk, the CEO of Tesla, has long tempted people with his vision of a cheap electric vehicle. Fans are hoping that he would clarify what he has in mind this week, as well as potentially how he will be able to pay to build it.
Musk claimed that he abandoned the Model 2 concept for a $25,000 vehicle last year because he was still learning the new battery technology that he claimed would be essential to affordable vehicles.
To reach Tesla’s objective of doubling vehicle deliveries by 2030 to 20 million, mass market expansion is essential. Tesla car recently reduced prices to increase sales, which were being hampered by a struggling economy and increased competition.
Although its shares have increased by roughly 60% year to far, they are still only at 50% of their November 2021 peak.
Together with plans for manufacturing growth and capital expenditure, Musk will present his “Master Plan Part Three” at a “Investor Day” on Wednesday. The low-cost automobile is anticipated to be the focus of this strategy.
Investors will be cautious no matter what he says about deadlines though, as he has consistently missed important dates while developing the most valuable automaker in the world.
“Decoding Musk is a rather straightforward formula. Gene Munster, Managing Partner at Deepwater Asset Management, which holds Tesla shares, advised doubling whatever time frame the customer had.
He anticipates the launch of the new automobile platform to occur no later than 2025, which is still many years quicker than the average time for the creation of a new vehicle in the auto industry.
Reuters contacted Tesla car for comment, but they didn’t answer.
Musk’s hints about the Model 2 give a lot of room for interpretation. He stated at a presentation regarding batteries in 2020 that creating an appealing $25,000 electric vehicle “has always been our dream from the founding of the company.”
Musk had stated his intention to release a robotaxi without a steering wheel or pedals by 2024, though it was unclear if this was the same low-cost vehicle.
Observers of the firm speculated that a recent Tesla car engineering film of a little car with classic Tesla curves was a drawing of the Model 2.
Sam Abuelsamid, an analyst at Guidehouse Insights, stated that while Tesla car may introduce a less expensive vehicle with a limited range for the Chinese market, the company’s own batteries’ gradual ramp-up time means that it will probably take some time before such a vehicle is available for the American market.
Musk claimed last year that the new master plan, which builds on earlier ones for vehicle launches and developing solar and energy storage businesses, is about how to “scale” and get all the materials needed to make batteries for vehicles and energy storage systems. The podcast, titled “Getting Stoned,” which Musk produced, is about minerals.
The basic factor “of the rate at which we can transition to sustainability is the rate at which we can grow the output of lithium ion batteries,” he stated in the interview.
Although there are some signs that the sky-high lithium prices may be decreasing, Musk has stated that lithium pricing could compel Tesla car to produce its own supply of the metal used in electric vehicle batteries.
Another problem is battery manufacture.
Musk predicted in 2020 that his business will generate 100 gigawatts of newer, more affordable batteries in 2022, enough to power nearly 1.3 million Tesla car Model Ys, but the battery manufacturing rate in December was only enough for slightly more than 50,000 vehicles annually.
Musk has also stated that Tesla car will keep using battery providers to scale up quickly. Panasonic, CATL, LG Energy Solution, and BYD are just a few of Tesla’s cell providers.
In Musk’s aspirations for a “totally sustainable energy future” outside the car, batteries are also probably going to play a role.
The two main pillars of a sustainable energy future, solar power generation and battery energy storage, may also be topics of discussion.
Investors will be on the lookout for any indications of demand, plans to increase Cybertruck production—which Musk indicated will begin in volume next year—and the locations of new Tesla car facilities, with Mexico, Canada, Indonesia, and South Korea all mentioned as potential locations.