Tesla Could Produce a $25,000 Car in 3 Years

In a recent interview with Tesla CEO Elon Musk suggested that with some work, Tesla could potentially be producing $25,000.00 cars within as little as three years, though he admitted this goal was “really tough” considering the industries steep competition. Musk took the time to sit down with tech YouTuber Marques Brownlee to discuss the future of electric vehicles, where he explains that Tesla struggles to keep up with bigger automotive manufacturers due to their comparatively smaller operation. In an industry he calls “insanely competitive” he states that it is tough to match producers like General Motors or Ford, who have the production capability to crank out large quantities of cars, something that Tesla has had long-standing problems with.

In the interview, Musk states that Tesla is, “really focused on making cars, which is really tough. In order to make cars more affordable, you need high volume and economies of scale.” This has been a primary concern for Tesla, who has struggled to meet production quotas with their Model 3 cars. Upon their announcement, over 450,000 reservations were made for the car, but that number has since dramatically dwindled after Tesla has still yet to meet this production goal.

Brownlee asked Musk if there would be a cheaper vehicle in the works at Tesla that could meet the demand of the burgeoning electric vehicle economy. Musk responded by saying, “I think in order for us to get up to…a $25,000 car, that’s something we can do. But if we work really hard I think maybe we can do that in about 3 years.”

Musk compared designing cars to the early years of the cell phone, which suffered from clunky designs and lacked the functionality we take for granted today. “With each successive design iteration, you can add more things, you can figure out better ways to produce it, so it gets better and cheaper.” The Model 3 currently runs for $49,000, which is almost double the amount it costs to get a Toyota Prius, a current competitor of Tesla. This is an exciting prospect to get a more budget-friendly Tesla in the future, especially with electric vehicles gaining more ground in the U.S. as a more environmentally friendly choice.