Elon Musk ended Tesla’s big battery event Tuesday evening with some big promises about the pricing of Tesla’s future cars and the announcement of a new ultra-fast version of today’s Model S. After reviewing improvements in Tesla’s own battery designs and battery manufacturing capabilities, improvements that could result in huge reductions in battery costs, Musk promised a $25,000 Tesla electric car that would be available in about three years.
That would be much cheaper than any car Tesla has made so far. Musk has a history of sometimes under-delivering on promises, or even not delivering at all. Years ago, Tesla promised a $35,000 electric car, the Tesla Model 3, but even then, the Model 3 was only available at that price for a short time.
While Tesla won’t begin mass-producing the batteries for months, the company expects the improved design to help lower vehicle production costs in the coming years. Musk said the development of an affordable mass-market electric vehicle “has always been our dream from the beginning of the company.”
“Our first car was an expensive sports car, then it was a slightly less expensive Sedan and finally, sort of a mass-market premium, the Model 3 and Model Y. But really, it was always our goal to try to make an affordable electric car,” Musk told shareholders during the “Battery Day” event. “I think probably, about three years from now, we’re confident that we can make a very compelling $25,000 electric vehicle that’s also fully autonomous.”
Tesla shares were down more than 4% in after-hours trading. Earlier on Tuesday, Tesla shares fell after Musk said the technological advancements announced during Battery Day would not enter “high volume production” until 2022. Musk said the company has yet to come up with a name for the $25,000 vehicle.
Todd Horwitz Chief Strategist BubbaTrading.com
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