There are some clues that Elon Musk has given for the next generation vehicle and it looks like it will be mostly autonomous.
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Generation 3 Vehicle
Elon Musk spoke recently at a Morgan Stanley conference to discuss Twitter, Tesla, SpaceX, and other matters. During the last half of this presentation, he had some interesting things to say about Tesla.
He was asked about the next generation vehicle that would be built at Giga Mexico. At Tesla's latest Investor Day, nobody on the Tesla team gave more details than what was available in the slides, but Elon Musk gave some more details when asked about it.
This vehicle will be built at Tesla's Giga Mexico factory and is expected to operate as an almost entirely autonomous vehicle, according to Elon Musk.
Tesla has been hard at work on its FSD software and recently released its full software stack that combines highway driving with city streets, creating a seamless experience. Tesla has made amazing progress, but the vehicles are not yet autonomous and driverless.
Tesla says that its FSD system is a level 2 system. This means that a driver can be in the car with the software running, but needs to be ready to take over at any moment, as the car can make mistakes. This means supervising cruise control, braking, autopilot, and other features.
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Mostly Autonomous
I think it's very important to listen to Elon Musk here. Many are wondering what kind of vehicles are going to be produced from Giga Mexico, and I think it's quite possible that only one kind of vehicle is going to be produced - a dedicated compact Robotaxi vehicle.
Elon Musk stated that Tesla's most crucial and important goal is autonomy. When giving some details about the next vehicle, he said that it should cost roughly half of what the Model 3 would cost, and it would be focused on self-driving.
A Model 3 in the U.S. costs about $43,000. In China, it's about $33,000. It will be interesting to see what the price of this vehicle is in other areas of the world.
Elon Musk sees a clear path to develop this car and make it affordable to most people. It's all about improving manufacturing processes, getting rid of things that aren't needed, and making the battery pack smaller. That's it.
I think Tesla will start building this compact Robotaxi at Giga Mexico sometime in 2024. It's anybodies guess if it will have a steering wheel and pedals or not. If it's going to focus on autonomy, then I would expect it to have fewer parts than a current Tesla vehicle does.
What do you think the compact care will be? Will it be a Robotaxi from Giga Mexico?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
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