Tesla says it will cut costs of next generation cars in half

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Tesla says it will cut costs of next generation cars in half
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The changes could bring the cost of a new generation of vehicles to around $25,000.

CEO Elon Musk and other executives outlined the goals during a 3 1/2-hour investor day presentation at Tesla's Austin, Texas, headquarters Wednesday as they presented the company's third master plan.of a new generation of vehicles to around $25,000. Many investors were hoping to catch a glimpse of the next generation vehicles, but Musk said they wouldn't be shown until a proper product unveiling.

He said the company’s long-term focus may have disappointed some investors, but he sees Tesla's vision as justifying its high stock valuation versus other automakers. The company, he said, will build the cars in smaller modular units, then bring those units together. The system uses less space. Executives said as a result, its next electric powertrain factory will be half the size of the one Tesla just built in Austin, costing 65% less.

The company also said it would design vehicles so they have fewer wires and transistors, and use fewer expensive rare-Earth metals in the batteries.

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