Saturday, April 1, 2023

Tesla expects manufacturing costs to continue to fall

Martin Vecha is responsible for looking after investors in Tesla. At a closed event, he recently spoke about the future expectations of the electric car maker. A guest disclosed on the portal business Insider Certain information and forecasts disclosed by the manager.

According to Vecha, the electric car industry will grow as fast as the supply of batteries. This will have a similar impact on areas such as the manufacture of rechargeable batteries and battery systems, but also the design of energy storage devices and the extraction and processing of raw materials. The Tesla executive said manufacturing cost per vehicle is the most important metric for years to come — because it ultimately determines how many cars a company can make and how big it can get.

In 2017, it cost Tesla $84,000 to build an electric car. Viecha said this has come down to $36,000 per vehicle in recent quarters. This savings was only achieved to some extent through lower battery costs. Tesla benefited most from an improved vehicle design that simplifies production and a new factory design.

According to Viecha, Tesla’s main plant in Fremont, California, which was taken over by General Motors and Toyota in 2010, isn’t a particular driver of cost-cutting. New factories in Shanghai, China and Brandenburg near Berlin are cheaper. The US state of Texas now has a plant that can also produce more efficient e-cars. According to the manager, as new manufacturing plants produce more electric cars, they will be able to produce each vehicle for less than $36,000. This should have a positive effect on Tesla’s profitability.

In the auto industry’s 120 years, there have been only two major manufacturing revolutions: one was the Ford Model T and the other was Toyota’s cheaper production in the 1970s, Wicha said. “The electric car architecture is so different from an internal combustion engine that it enabled the third revolution in car manufacturing.”

Asked if Tesla could make a more affordable electric car, the Tesla Man said the company wants to get a cheaper vehicle on the road. As a volume maker, you need a broad portfolio, and a cheap proposition before Tesla can launch its planned in-house robottaxi service.

When such a previously announced new entry-level electric car might be introduced, it remains to be seen. Apparently this is not a priority at the moment: demand for the mid-size sedan Model 3 and mid-size SUV Model Y is stronger than expected, which, according to Viecha, will obviate the need for a new model in the near future. , He expects the Model Y to become the world’s best-selling car by 2023.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news