Can we expect to see an affordable electric vehicle from Tesla any time soon? The question of whether the Elon Musk-headed automaker was working on a new car that would likely expand EV ownership in the U.S. and elsewhere has loomed over the automotive world for a while now – and led to some friction last year when Reuters reported that the project was dead, followed by a rebuttal from Musk.
On Tesla’s earnings call this week, Musk provided a candid update on the status of the project. As Electrek’s Fred Lambert reports, Musk told the shareholders on the call, “It’s a Model Y.” Presumably, it’s a version of the Model Y — currently priced at $44,990 on Tesla’s website — with certain features downgraded or removed. Lambert went on to predict that the automaker would take a similar approach to its scaled-back Model 3 sold in Mexico.
In Tesla’s most recent quarterly update, they provided some context for why they’ve opted for this approach rather than creating an entirely new EV. “Our focus remains on prudently growing our vehicle volumes in a capex efficient manner by using our existing vehicle production capacity before building new lines,” the company stated — so, presumably, it’s more efficient to produce a pared-down version of an existing model.
Tesla Picked a Weird Time to Add Grok to Its Vehicles
They’re not the only automaker rolling out AI featuresWhen Tesla’s foray into affordable EVs goes on sale, it’ll be entering a very different market than it would have a year earlier. With the federal EV tax credit set to end later this year, EV pricing is set for a shakeup. Earlier this month, The Verge reported that Slate Auto — the automotive startup touting an EV selling for under $20,000 — has had to adjust prospective buyers’ expectations with the tax credit no longer being available.
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