Warning All Rivals: A $25,000 Tesla Is Coming Soon

Electric Vehicles / Comments

Just one of Elon Musk's "Battery Day" announcements.

As promised, Tesla's "Battery Day" lived up to its expectations. Electric vehicle fans and industry watchers, in general, were all ears as Musk announced plans to manufacture new "tabless" batteries in-house. These batteries, which will not only help reduce overall costs and lower the price tag of new Teslas, are also capable of making vehicles at least six times more powerful and boost range by 16 percent. Tesla currently sources its batteries from Panasonic and will continue doing so for the foreseeable future as the new tabless batteries are still a few years away.

And then there was this piece of news: a new $25,000 Tesla. Currently, the company's cheapest vehicle is the Tesla Model 3, having originally been sold for a $35,000 base price for a short while.

Tesla
Tesla

The new and so far unnamed entry-level Tesla, according to Musk, will be capable of full self-driving, which is quite impressive given that the various sensors and other required hardware and software is not exactly cheap. He also admitted Tesla's fully-autonomous driving software still has several main issues that need to be worked out.

This isn't the first time Musk has promised a $25k model. Back in 2018, the Tesla CEO claimed it'd be on sale within three years. For now, Musk did not provide a new launch date though it's definitely not happening in 2021. It's important to understand that this new and cheaper Tesla won't happen until the tabless batteries are ready to go. Why? Because those batteries will enable Tesla to halve the kilowatt-hour price.

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Tesla
Tesla
Tesla

The new model will also have to be produced in massive numbers from the get-go, as demand is guaranteed to be high from the moment reservations are accepted. Tesla won't want to relive the Model 3's production nightmare with the upcoming budget EV.

Currently, Model 3 and Model Y production has slowed down due to Panasonic unable to keep up with battery production, which is another reason why Musk wants Tesla to make its own batteries.

Other details about the new cheaper Tesla, such as body style, were not provided, but one thing is for certain: rival automakers will have to respond and do so fast.

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2017-2020 Tesla Model 3 Side View Driving Tesla
2020 Tesla Model Y Front View Tesla
2020 Tesla Model Y Side View Driving Tesla

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