Stop us if you’ve heard this one before. A new report claims that Tesla is once again working on a lower-cost EV. One that will not just be a strangely stripped-down Model 3 or Model Y. The difference this time is that the claim isn’t coming from the head of the company. It is coming from the suppliers who have been contacted about making the parts to build it.
Is Something Actually Happening This Time?
The 2024 Tesla Robotaxi, or Cybercab, will soon start a comprehensive testing program in Austin, Texas.Tesla
Tesla CEO Elon Musk first announced the $25,000 EV in 2018, and has said over and over that a low-cost EV was in development. In 2023, the company released some specs for the car, and projected hilarious sales in the 40 million range. Last year, reports surfaced that when Musk claimed the car was still on, he hadn’t told the rest of the company.
The difference this time is that the ramblings aren’t coming from Musk. Instead, Reuters cites multiple sources at suppliers who say their companies have been contacted by Tesla to discuss plans for a new compact crossover. The talks are said to involve the manufacturing process and specifications for parts for the vehicle.
This one will be much smaller than Tesla’s current offerings. The report says it would be about 14 feet long, a foot and a half shorter than a Model Y. Three sources said that it would be built in China, and one said it would be expanded to also be built in the US and Europe.
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Musk has been pushing driverless vehicles, showing the two-seater Cybercab concept car in 2024. The report says that this new model could be designed with and without a steering wheel, giving Tesla the flexibility to sell a car while laws don’t allow for one without a driver or wheel. Reuters cited a Tesla employee as saying the company was working to build driverless models that had a human drive option.
Is The Project Still “Accelerated?”
The Tesla Model 3 Performance. Fast, but also leaning towards the heavy side.Tesla
Despite being in progress for six years and getting “accelerated” in 2023, the sources said that the new model is still in the early development stages. Tesla revealed both the Roadster and Semi in 2017; the Semi hasn’t hit mass production, and the Roadster isn’t in production at all, to give you an example of the company’s timelines.
After peaking in 2023, sales of Tesla’s EVs have fallen sharply. It sold an estimated 1.8 million vehicles that year, but just 1.65 million last year. New lower-priced Model 3 and Model Y vehicles didn’t move the sales dial, and Tesla has since announced it was ending production of the Model S and Model X with no replacement in sight.
We’ve heard the “cheap EV” story before, not just from Tesla but from Nissan, GM, Volkswagen, and more. While some more affordable models do hit the market, with the Nissan Leaf, Chevrolet Bolt, and others squeezing in at the $30,000 mark, no model has yet arrived with an MSRP significantly under that level.
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If Tesla is still in talks with suppliers, then any potential production is likely at least a year away, and more likely years. Building up capacity for a new vehicle with new parts takes time. If it was closer, the notably outspoken CEO would likely already be posting about it. Working to build hype there, instead of just his AI projects and humanoid robots.
Source: Reuters
