Elon Musk recently teased a potential future car costing as little as $25 000. This was incredibly significant and foretells the final nail in the coffin of the traditional car industry based around fossil fuel propulsion. With not much more than a single slide and a couple of sentences,Musk revealed where all the minor improvements on the Tesla up until that point in the presentation were leading.
Numerically, it was a 56% reduction in battery costs. But then he explained that this would enable a $25,000 Tesla TSLA +3.8% “with fully autonomous capability”. Musk didn’t make any bolder claims about what this car would be able to deliver.
But based on the fact that he infamously cancelled the Standard Range version of the Model Y, stating that under 250 miles EPA range was too low, and subsequently that 300 miles of EPA range was the “new normal”, it can be assumed that the %25 000 car will have at least 300 miles of EPA range, which would mean well over 300 miles with the more frugal WLTP test.
Musk was talking about the new battery enhancements being able to deliver the price enabling a Tesla EV at this level in 1.5-3 years’ time. So in 3 years may have to choose between a well-built German fossil fuel car, or a semi-premium EV with over 300 miles of range and much faster performance and much cheaper to run.
Are you ready to be part of the future?
With a $25,000 price tag, the argument “I can’t buy the EV because it’s too expensive” will no longer hold water. What would you choose – a Tesla Model 2 EV or a VW Golf with a conventional fossil fuel engine? In three years from now, recharging will be much more ubiquitous, too – and it’s hardly a trial for Tesla owners already.
When you can buy an EV with over 300 miles of range that is faster and equipped with better technology than an internal combustion engine VW Golf, as well as being much cheaper to run, only groundless anti-electric prejudice will stop you.
There won’t be any real reason to buy a car that runs on fuel derived from oil and gas anymore. This car will almost certainly be fast as there’s no such thing as a slow Tesla. It will definitely do 0-60mph in under 6 seconds.
There have already been rumors of Tesla planning a small hatchback or subcompact vehicle. This model will likely be the format of the new car given the price.