Tesla is already working on a new model of electric car more affordable than the Model 3 and Model Y.
According to the British portal specialized in motor vehicles Coach, Elon Musk’s company is working with a technical team in China to develop a new compact electric car with LFP (lithium-ferrophosphate) batteries that will start at $ 25,000 (20,000 euros). This vehicle would be manufactured in the Shanghai Giga for the whole world and could reach the market in 2023 to compete with rivals such as the Volkswagen ID.3 or the Nissan Leaf.
In comparison, this new vehicle would be priced at about $ 10,000 less than the most basic Tesla Model 3, so its launch could mean a significant increase in Tesla’s market share, which until now and due to its prices, has been he had maintained for a public with a higher purchasing power.
The key to the price is in the battery
According to Autocar, this reduction in price will be possible thanks to the new battery technology that Tesla is developing. This technology will begin production in 2022 and would reduce manufacturing costs by 50 percent over current methods. But in addition, it would give the vehicle five times more power and up to 16 percent more range per full charge.
Elon Musk first mentioned this technology at Tesla Battery Day 2020, the annual event where the company shows your news. Musk said one of the things that worries him the most is not having a truly affordable car, something they could fix with cheaper batteries.