Elon Musk Confirms Tesla is Close to Producing $25,000 Next-Gen Car at Giga Texas, Teases “Technology That’s Far in Advance”

Elon Musk confirmed next-gen $25,000 vehicle production has moved from Giga Mexico to Giga Texas. Musk added Tesla is close to starting production of this car and teased “technology far in advance of anything in the automotive world.”

Under everybody’s nose, Tesla has been making significant advancements on a next-generation vehicle that will once again fundamentally redefine what a car is.

The vehicle, internally known as robotaxi and externally as the $25,000 vehicle, will not only revolutionize the automotive market in terms of design but will also be built in such staggering numbers that the automotive world has never seen before.

At the company’s Investor Day presentation held this March, Tesla delved deep into the third-generation vehicle platform that the new car will be based on. The Gen-3 platform includes several engineering, materials, and manufacturing breakthroughs.

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We were all in awe of all the technological advancements Tesla revealed during the Investor Day presentation. However, since then, barring some sporadic reports, the EV maker has been suspiciously quiet about the robotaxi development. 

A few months ago, we started to hear rumors from auto suppliers that Tesla was signing a gigantic contract for enough parts to produce 4 million next-generation vehicles a year.

Last month, in a speech he delivered to Giga Berlin employees, Elon Musk also confirmed that the German factory will be building the $25,000 vehicle.

And thanks to a bit of a slip-up from Oracle CEO and former Tesla board member Larry Ellison, we learned that Tesla is not planning to produce 4 million robotaxi’s a year but, that the number was actually 5 million vehicles a year.

Ellison also revealed that the EV maker has far advanced the $25,000 car project and production is slated to begin in the next 12 to 18 months.

Given the fact that Tesla has said initial production of the robotaxi will take place at Giga Mexico and the fact that construction hasn’t even started at the plant, Ellison’s 12 to 18 months timeline was a bit of a head-scratcher.

However, thanks to a new interview that Elon Musk conducted with Sandy Munro at Giga Texas, we have a bit more information that clarifies Tesla’s plans for the next-generation vehicle.

Musk was hesitant to go into some of the details regarding the $25,000 vehicle however, in response to Sandy’s question about the new car Musk responded saying…

“We’re working on a low-cost electric vehicle that will be made in very high volume. We’re quite advanced in that work. I review the production plans for that every week. The revolution in manufacturing that will be represented by that car will blow people’s minds.

It’s not like any car production line that anyone has ever seen. The thing that’s most interesting about this is its production system. It’s a level of production technology that’s far in advance of any automotive plant on earth. It’s going to be cool.

I should point out that the first production line will be here at Giga Texas in this facility. Giga Mexico will be the second place. It’ll take too long to complete the factory in Mexico. We’re adding a significant extension to Giga Texas on the south and adding more buildings. We’ve 2000 acres, this is really just a small part of the property.”

Musk’s comments, although brief, in one fell swoop luckily appear to confirm all previous leaks suggesting Tesla is targeting very high volumes for this vehicle, that production is closer than people anticipate, and that initial production of the $25,000 vehicle has moved from Giga Mexico to Giga Texas.

This is certainly exciting and we’ll monitor Tesla’s progress towards the production of the $25,000 vehicle and we’ll be sure to report back. Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.

So what do you think? Surprised to hear Elon Musk admit that production of the next-generation vehicle has advanced more than people anticipated? Also, what do you make of the change from Giga Mexico to Giga Texas? Let us know your thoughts in the comments below.

Image: Courtesy of Teslaconomics

For more information check out: Tesla’s VP of Investor Relations Defends MKBHD’s Cybertruck Review Against “He Should Stay in His Lane” Comments & Production Quality Concerns

Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.