Tesla aims to produce an electric car with a price tag of $25,000 within the next three years.
Speaking at Tesla's 2020 Battery Day live presentation, on Tuesday, entrepreneur and Tesla CEO Elon Musk said the development of a $25,000 vehicle is on the horizon, with the overall aim of bringing down the initial cost associated with purchasing a Tesla.
"That will basically be on-par or slightly better than a comparable gasoline car," Musk commented, adding that Tesla's timeframe for producing the cheaper model will be roughly three years.
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Tesla is known for the Model Y, Model S, Model X, and Model 3 product lines, of which, the Model 3 is the cheapest on offer.
The Model 3 made its debut in February 2019, sporting a 220-mile range, a top speed of 130 mph, and acceleration from 0-60 mph in 5.6 seconds. The vehicle costs $35,000, a price point Tesla says has only been made possible by shifting sales to an online-only platform and by winding down physical outlets.
"For a lot of people, they want to buy a Tesla, but they simply don't have the money," Musk commented. "We could make the car infinitely desirable, but if someone does not have the money, they won't buy it."
"It's critical that we make cars that people can actually afford."
Alongside the teaser related to a cheaper Tesla, Musk announced the development of a new battery cell, a cylindrical design that provides a 16% range increase and a reduction in cell cost per kilowatt-hour.
CNET: New Tesla Battery tech reveal event in 27 minutes
In March, Musk revealed the company had bypassed the one-million mark in producing electric vehicles, and over the past year, share prices have grown by a staggering 800%.
However, investors seemed less impressed with Battery Day, with share prices dropping by 5.6% to $424.23 at market close.
In other recent Tesla news, the company is attempting to deter customers who are tempted to soup up their vehicles with performance boosters offered by third-parties.
Ingenext's Boost50 module has been designed for the Model 3 to reduce acceleration time as well as enable a so-called "drift mode" that disables traction control while maintaining power steering and ABS.
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The module, a cheaper alternative to Tesla's $2000 official "Acceleration Boost" upgrade, was rendered useless in the Model 3's 2020.32 software update. However, a cat-and-mouse game may have begun, as Ingenext appears to have circumvented Tesla's attempt to block the software.
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