Tesla Next-Gen Platform Will Cut Production Costs in Half, Be Built at New Factory in Mexico

Image: Tesla

Tesla to cut next-gen platform production costs by 50%. The model on the new platform will be built at a new factory in Mexico, which was officially announced at Tesla Investor Day.

On Wednesday, Tesla held an Investor Day where it revealed the way to move humanity out of dependence on fossil fuels and into a fully sustainable energy economy. One of the key points in achieving this goal is the wider distribution of electric vehicles. However, to really achieve this, they need to be made affordable to more consumers. At the moment, Tesla's most affordable car, Model 3, costs about $35,500 in the US, including tax credits. This makes it out of reach for the multitude of consumers who want to drive an electric car but cannot financially afford one.

Therefore, now Tesla is paying special attention to the development of a third-generation platform that can provide what it strives for. The company had previously said it would only start production of a new car model when it achieved a halving of production costs compared to the current Model 3/Y platform. In addition, the prerequisite was that the speed of production of cars on the new platform should be twice as fast as it is now.

At Investor Day, Tesla's Chief Engineer, Lars Moravy, said production of the next-generation platform could cut costs by up to 50 percent. Achieving this will bring closer the hotly anticipated $25,000 model that Elon Musk envisioned at Battery Day. This is an important task for the company, as the price is the biggest obstacle for many when buying a Tesla car.

Tesla did not present the new model at Investor Day, however it said that the way it is produced will be different from how its cars are now. The new platform will be the basis for several future models, however no details have been disclosed.

Tesla said that the production of cars on the new platform will be started in Mexico. To do this, the company will build a factory there, which we have already heard a lot about in recent months. At an event on Wednesday, Tesla officially announced the construction of a factory in Nuevo León, Mexico.

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