One of the main reasons for the relatively slow adoption of electric vehicles (EVs) is affordability, a Tesla, Inc. TSLA executive on Monday, while highlighting the significant cost reductions the company has achieved in manufacturing electric vehicles.
What happened: The cost to produce a Tesla car is now $36,000, a significant drop from $84,000 in 2017, he said Martin VichaTesla’s VP of Investor Relations, at a Goldman Sachs tech conference Business Insider.
According to the company, the cost savings are not due to cheaper battery prices, but to a better vehicle design that simplifies manufacturing and a new factory design.
Tesla’s Fremont plant is not a “great place” to build cars, and there are cheaper places, including Shanghai and Berlin, supposedly said Viecha. He added that the company wants to continue on this path and push the boundaries of the cost of producing an electric vehicle. When new factories ramp up, they should be able to make cars for less than $36,000, which should boost Tesla’s profitability, he said.
See also: Tesla has access to all the battery cells it needs for the first time, says Senior Exec: Report
vocation Ford Motor Company f Model T and Those of the Toyota Corporation TM The cheaper production approach in the 1970s as two major automotive revolutions, Viecha said that the EV architecture, which is completely different from internal combustion engines, should pave the way for a “third automotive revolution”.
Price promotion: After closing Monday’s session 1.58% higher at $304.42, Tesla shares rose 0.22% in premarket trading on Tuesday Benzinga Pro data.
