- A new report says that Tesla’s upcoming affordable models will be heavily based on the Model 3 and Model Y.
- Tesla confirmed that they’ll use an existing platform and existing production line for new entry-level EV
- By using existing tech, Tesla says it’ll allow them to launch lower-cost models more quickly
Tesla is cooking up more affordable models, but these vehicles are not expected to use ground-up new platforms but instead serve as incrementally improved versions of existing cars.
While Elon Musk quickly refuted the claim that an all-new Model 2 was dead, Tesla has only since committed to building more affordable models, asserting they will use existing platforms, as well as existing production lines.
Read: Tesla Posts Largest Revenue Dip Since 2012, Yet Shares Surge On ‘Affordable Model’ News
A new report from Reuters now claims that Tesla’s upcoming affordable models are basically stripped-down versions of the Model 3 and Model Y.
“We see it as more likely that Tesla will attempt to launch stripped-down versions of the Model 3 and Y as lower-cost models, however, we are unclear on how much cost Tesla can realistically take out,” Bernstein analyst Toni Sacconaghi said.
If Tesla does go down the route of offering a more basic version of the Model 3 and Model Y as the brand’s new entry-level models, the EV maker will follow the same classic strategy other carmakers use for decades.
“It is a traditional automaker strategy,” added Leverage Shares senior researcher Sandeep Rao. “You can go and buy a Volkswagen Golf Highline, which is a basic version, or you can go buy a GTI, which is a pricier version and also 25% more expensive.”
Tesla said that by using an existing platform will allow it to bring more affordable vehicles to the market faster. However, it has acknowledged doing so will result in smaller cost reductions and only modest volume growth.
