these are the estimated prices

The objective of Tesla is to dominate the electric car market. The route: reduce the cost. Elon Musk announced that the next generation of his company’s vehicles will be worth half of the current ones.

Musk spoke on the subject in an Investor Day presentation, which lasted about three and a half hours. The event happened this week at Tesla’s headquarters in Austin, Texas.

Although investors were hoping to find out what next-generation electric cars would look like, Musk said: “We would be quick to answer your question.”

The gigafactory in Mexico and the probable value of future Tesla cars

But how much would a next-generation Tesla car end up being worth? And what would be its characteristics?

In accordance with ABC News, the vehicle would cost about $25,000 on average.

The main change is that each electric car would be smaller than current models, using fewer wires and transistors, plus fewer expensive rare-earth metals in the batteries.

The future plant in Mexico, in Nuevo León, would play a very important role in Tesla’s new measures.

“Many automakers build smaller vehicles in Mexico to save on labor costs and preserve profit margins,” ABC News said in its report.

Zachary KirkhornTesla’s chief financial officer, stated that Elon Musk’s company had already cut costs in half between the first Model S and X and the second generation, the 3 and Y.

By 2030, Tesla expects to produce, among all its gigafactories, 20 million vehicles per year. The 2023 figure points to 1.8 million electric cars.

Reactions to Elon Musk’s announcements in his electric vehicle company

Despite the news Tesla shares are down 6%. CFRA analyst Garrett Nelson said the reason was a lack of details about the new vehicles.

He also recalled the tendency for the company’s shares to rise before big events and fall when real news is released.

“What they described really showed that it deserves to be traded at a huge premium to the rest of the industry,” Nelson said of the Elon Musk news.

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