Tesla says it will cut the cost of its next generation of vehicles in half, largely by using innovative manufacturing techniques and smaller factories.
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.
It's likely that the next generation vehicles will be smaller than the current ones to bring the prices down, but that wasn't clear from the presentation. Many automakers build smaller vehicles in Mexico to save on labor costs and preserve profit margins. “What they outlined really made the case that it deserves to trade at a big premium to the rest of the industry,” he said.
“That also means we can build more factories at the same time," said Tom Zhu, who leads Tesla manufacturing. “As we improve affordability, the number of customers who have access to our products increases,” Kirkhorn said.Executives said Tesla is unique from other automakers because all the people involved in vehicle design and manufacturing are in the same room. The company also designs and makes many of its parts and software while others rely on tiers of parts supply companies.
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