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Tesla Vehicles - No Longer for the Rich
Tesla vehicles used to only be for the rich. When the Original Roadster came out, it was around $100,000 and the money made from that vehicles was used for the Model S - which was still very expensive. It wasn't until the Model 3 came out in 2017 that the price of a Tesla vehicle was no longer for the rich.
The rich can still buy a Model S or Model X, of course, but the Model Y and Model 3 SUV and sedan are getting more affordable every day with Tesla doing price cuts and implementing cost-cutting measures like economies of scale, manufacturing improvements, and the reduced cost of supplies and minerals.
Tesla is also going to release the Cybertruck this year and I think there's going to be a dual motor variant with around 270 to 300 miles of range that costs around $50,000. This will be a truck that is much cheaper than any comparable truck on the market, be it EV or a gas truck.
Tesla will also release a tri or quad-motor variant that will cost $79,990 that will have between 400 and 500 miles of range, depending on how much Tesla tries to cram in for the battery.
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How Cheap Will Tesla Vehicles Get?
The good news for everyone is that the average price of a Tesla is going to continue to go down and toward the end of this decade, the average cost of a Tesla vehicles is going to be $30,000 or less. This will happen because Tesla will release new models including two new compact models (a compact SUV and sedan), as well as a sub-compact vehicle, which will cost between $18,000 and $20,000. This vehicle will do well in other countries in Europe, China, and India.
Tesla hasn't made these lower cost vehicles yet because it hasn't reached that point in its master plan, but, if you saw Investor Day 2023, you saw Tesla go into great detail about how it is going to build the first compact vehicle and how it will be half the cost of the Model 3 and Model Y platform.
You would simply halve the cost of the Model 3 currently and Model Y to get the cost of these vehicles. That gets you to $20,000 and about $24,000 respectively. If Tesla is able to make its compact sedan and SUV that low of a cost, they are going to sell - especially if they are autonomous.
The sub compact will be less than $20,000 and could even be $15,000 if costs keep coming down and batteries become inexpensive. The only way batteries become inexpensive is if mining is no longer needed as much and recycling takes over as the primary method to get a battery.
Do you think Tesla vehicles are no longer for the rich? Will Tesla keep bringing prices down?
In Related News: Production Beta View of Tesla's Cybertruck
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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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