Elon Musk: Tesla Working on Next-Gen Car That Costs Half as Much as a Model 3

At half the cost of the Model 3 and Model Y, a much more affordable vehicle may soon join the lineup of electric vehicles.

There are a lot of reasons to be skeptical about the announcement that Musk made during the company's earnings call.

Musk said during the earnings report that the company's next platform will be more compact than the Model 3 sedan.

The next-generation vehicle will be half the cost of the 3/Y platform and it will be smaller.

Musk did not reveal the vehicle's name, nor did he specify a release date, but he did say that it's the primary focus of the new vehicle development team.

$25,000 Tesla

Musk promised back in 2020 that the car would be priced at $25,000. Earlier this year, Musk appeared to go back on his word after he said that the company had too much on its plate.

He seems to have had a change of heart again.

With mass manufacturing at an affordable cost, the upcoming car could potentially allow the manufacturer to reach a market of buyers on a limited budget.

Getting Serious

Launching an entirely new platform is a huge task that has historically taken much longer than Musk would have liked.

Getting the Cybertruck out of the door is more of a concern for the company than anything else.

It's great news for fans of the electric car who can't afford to pay a lot of money. A new model of the Model 3 costs over $50,000.

We will have to wait and see if Musk is serious or just leading on his fans.

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