When Tesla releases its next generation vehicle, the $25,000 compact car, it's going to ramp incredibly quickly, at a pace that is at least twice as fast as the Model Y. It will sell up to 5 million units per year or more.
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Tesla Next Generation Vehicle: Produced at a Breakneck Pace
The Tesla next generation vehicle is going to cause quite the disruption to the ICE industry. In a few years, Tesla is going to be producing the compact car, and it will be doing so at such a fast pace, that it will almost be unbelievable: twice as fast or more as a Model Y. The $25,000 compact car is on Tesla's roadmap and Master Plan, however, they have been quiet about it lately and there is a big reason they have been quiet.
The compact car is the product Tesla will make that finally puts the nail in the coffin for the ICE industry. The reason will be the very low cost of buying it, along with low maintenance and insurance costs. Everything about the car will be better than its ICE equivalent, from safety to features to fuel usage to software.
The next generation Tesla will also be simpler to make due to using steer-by-wire and not having the steering wheel directly connected to the front tires.
Tesla is being quiet about the compact car because once they announce it, it is going to likely cannibalize some sales from the Model 3 and Model Y. In order for this not to cause too much of a problem, they need to be able to ramp to volume production on the next generation compact car as fast as possible, which should be within a year of announcing it. And by volume production, I mean millions per year.
That's right, Tesla will need to be able to get to millions of units of this next generation compact vehicle within the first year of announcing it. Otherwise, the wait times will be too long and Tesla will have to raise prices, which will defeat the purpose of it being the lowest cost Tesla on the road.
Legacy Auto have a few years to get their act together. Unfortunately, I don't think they will.
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How Many Per Year Will Be Produced?
At Giga Texas, I believe the compact car will get to 2 million units produced per year. The production method for building this car will be unlike anything we've ever seen from Tesla or any other company on earth. And, the cost could even be less than $25,000.
When the Cybertruck delivery event happened, there were tons of photos along the production line showing how the Cybertruck was made. It was all in plain sight to see.
Tesla will do the same thing for the compact car, showing its "unboxing" method for building the car at multiple stations and then being put together all at once at a final station.
I also think the compact car will not originally come with paint, but that paint will be an add-on option for those that want it at the end. It will be made of a stainless steel that will be easy to mold into a frame for the car.
Tesla will also build 2 million at Giga Berlin and 2 million at Giga Shanghai. Then, you have Giga Mexico, which will build another 2 million. The compact car could end up with 8 million units per year, and Tesla's other vehicles will be about 3 million.
Tesla also has a future vehicle, the sub-compact, that will be released at the end of the decade. I believe this vehicle will be produced in an even more unbelievable way. I can see Tesla building the frame of this vehicle from a single die casting - just one piece for the entire vehicle.
In Other Tesla News: Don't Forget About the Tesla Van - It's Coming and Will Be Built On the Cybertruck Platform: Amazing for Families
What do you think about the next generation Tesla vehicle being sold at 5 million units per year or more? Will it be produced at a breakneck pace?
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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.
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Why would anyone be excited…
Why would anyone be excited about another 8 MILLION cars on the road? Think about that, I'm sure you care about the environment, no you don't.
More cars meant more roads needing fixed or created and everyone knows that concrete is the worst thing for the environment. Let's be clear, electric vehicles do nothing good for our environment but it does really good for certain investors pockets.
Continue to lie to the world and the world will remember it. Have a great day 😀
As an all-in Tesla investor…
As an all-in Tesla investor I think there is a very interesting EV company that is now ramping manufacturing. Nobody seems to be taking about it… yet It offers a car, truck and van that like the new cybertruck has drive-by-wire technology! Amazingly you can buy the stock for only 24 cents a share! Imagine buying Tesla when it launched! Don’t miss out!They’re just now ramping up production! The stock is GOEV! I just put a $1000 stock order with betting $. I know it’s a long-shot, but the recent pivot to sell B2B to fleet buyers such as Amazon as delivery vans give it a unique niche Tesla hasn’t addressed yet
What is not understood by…
What is not understood by most people is the low cost electric cars will not sell well. The people who it will service don't have access to the infrastructure. So I expect there to be a spike of sales and then it will taper off. (Like you are seeing now.). The other issue will be insurance cost....
I think you are massively…
I think you are massively incorrect. There are millions like myself that are middle class that have the money to afford a more expensive cars, and think the idea of a fast Tesla EV would be great to have, but do not like spending 40k+ on any car.
A 25k Tesla would entice a lot like me to purchase. Let's be honest, most men would be happy to have the instant torque of an EV, but don't want the high price tag.