(Reuters) -Tesla Inc. will reduce assembly costs in future versions of vehicles by half, engineers told investors on Wednesday, but Chief Executive Elon Musk did not reveal when the much-anticipated affordable electric vehicle will be released.
Following the company’s investor day from its Texas offices, shares dropped more than 5% in after-hours trading.
More than a dozen Tesla (NASDAQ:TSLA) executives, headed by Musk, talked about everything from a white paper plan for the world to adopt sustainable energy to the company’s innovation in handling its operations from manufacturing to service.
The presentation featured an array of top engineers, including the new global production head, Tom Zhu, a nod to Tesla’s effort to demonstrate the breadth of its executive bench beyond Musk, the face of the business.
However, no information was provided about when the next iteration of vehicles would be available or what models would be available.
Musk was anticipated to set out a strategy for creating a more affordable electric car (EV) to expand his brand’s appeal and fend off competition.
Executives stated that Tesla’s next-generation platform would include more than one car made in uniform factories, but Musk dismissed queries about models in the works.
Tesla’s chief financial officer, Zach Kirkhorn, and others emphasised the company’s commitment to lowering manufacturing costs.
Kirkhorn calculated that Tesla would need to spend six times more than it has so far to meet its long-term goal of increasing output to 20 million cars per year by 2030, a tenfold increase over present capacity. The tab could be $175 billion, he said.
Musk announced the next funding move, a new Tesla factory in northern Mexico, as the company’s first plant outside of the United States, Germany, and China.
Musk did not remark on plans to revamp the Model Y car next year, dubbed Project Juniper by Reuters in a story on Wednesday, or on a revamped version of its Model 3 sedan, dubbed Highland and expected to go into production in September.
The Cybertruck vehicle, according to design head Franz von Holzhausen, will be available this year.
Capturing the general market is crucial to Tesla’s yearly output target, which is greater than the total production of Germany’s VW (ETR:VOWG) and Japan’s Toyota.
It would also reflect about a quarter of total worldwide vehicle sales for Tesla alone last year.
Musk said the key to boosting Tesla’s sales volume would be bringing prices down for customers, adding that the company’s reductions this year had stoked demand.
“The urge to own a Tesla is exceedingly strong. Their capacity to pay for a Tesla is the restricting element, Musk stated.
Musk stated that Tesla may only require 10 models, with each model line selling 2 million units per year at its goal output. In contrast, Toyota ships slightly more than 1 million Corollas worldwide each year.
Tesla already has a competitive advantage in profitably producing EVs. Lars Moravy, Chief Engineer, stated that the company intends to construct its next-generation cars for half the price of the present Model 3 or Model Y.
Moravy outlined an “unboxed” approach of snapping together sub-assemblies to minimise complexity and delay in manufacturing for future EVs.
High-profile Tesla investor Ross Gerber said the show was a “huge tease” for the next-generation car. “It’s on its way.” They spread everything out. Buildings cost 50% less. a) a) a) b) a) c) d) e) e)
In recent years, Tesla has outperformed the industry, quickly boosting dispatches despite the pandemic and supply-chain interruptions.
However, Tesla has reduced costs in recent months in order to boost sales, which have been hampered by a sluggish economy and increasing challenges from competitors in the United States and China.
Tesla will also need to improve its battery technology, which Musk has described as a “fundamental restricting factor” in the shift to renewable energy and more affordable automobiles.