Now in a new series of tweets, Tesla’s CEO confirmed that the $25,000 electric car won’t be a cheaper Tesla Model 3 and that the automaker indeed plans two separate new vehicle programs in Shanghai and in Berlin:
Musk was never clear on a timeline for the new electric cars designed in China and Germany, but he said last week that a cheaper $25,000 could be achieved within the next 3 years thanks to Tesla’s new battery.
I think we might be witnessing a small shift in strategy from Tesla here.
Tesla is currently making vehicles designed to pass regulations around the world with only minimal changes required.
With Cybertruck’s radical design, Elon admitted that Tesla is only trying to pass North American regulations and they would have to make a new design, likely with a smaller form factor, to launch the pickup truck in Europe and other markets.
Now we might be seeing a similar strategy for those new vehicle programs in China and Germany.
Tesla might not only be designing the new vehicle locally to fit the local demand, but they could also be made to fit local regulations, which would help achieve the lower price point.
To be clear, I am not saying that Tesla would lower their safety standards to just fit the minimum required in different markets. I don’t see that happening.
But there are plenty of automotive regulations that don’t necessarily have an impact on safety that vary greatly per markets and making vehicles that can be delivered everywhere is a lot harder.
It’s also not to say that Tesla won’t export those cars either with some modifications, like they do with cars produced in Fremont, but I think that could be a few years after the original start of production.
FTC: We use income earning auto affiliate links.More.