Tesla's gives an update on its upcoming more affordable vehicle
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The third-quarter earnings call for Tesla offered intriguing insights into the direction and focus of the company's upcoming next-gen vehicle, dubbed the Model 2 or the $25,000 car.
While drawing on a comparison to Cybertruck's production challenges, Elon Musk declared this vehicle will be more conventional for production with the overarching goal of achieving an unmatched level of manufacturing efficiency.
Functional Beauty: The Aesthetic Vision
The next-gen car is predicted to be the most produced car in Tesla's lineup, with the potential scale and reach of the Model 2, with implications suggesting it could match the combined volume of other Tesla models. The "high-volume, low-cost" will be simpler in design and technological features to achieve a production speed unprecedented in the auto industry. The mention of achieving "units per minute level that is unheard of" paints a picture of Tesla's commitment to scale and affordability.
Breaking away from the enchantment often associated with Tesla vehicles, Musk set the stage for a different kind of vehicle in the Model 2. Described as "utilitarian," this new vehicle won't be about enchanting consumers but serving a functional purpose. Despite this, Musk reassured that the car will still bear Tesla's signature beauty.
The Quest for Affordability
A dominant theme throughout the call was the relentless push towards reducing costs and improving operational efficiencies. Vaibhav Taneja, Tesla's Chief Accounting Officer, pointed out the myriad challenges and variables in managing product margins, especially given the ongoing factory upgrades.
Nevertheless, company representatives remain unwavering in their dedication to cost reductions for 2024, showcasing Tesla's commitment to affordability. As Taneja describes, this "cost attack" strategy involves meticulous examination and improvement of every line item, highlighting Tesla's dedication to affordability at every turn.
Musk equated their cost-reduction strategy to a "Game of Thrones" where even saving pennies mattered. Musk highlighted the importance of such savings, highlighting how even small elements, like unnecessary internal stickers or QR codes, are being scrutinized for their contribution to the vehicle's cost.
Driving down the costs for the Model 2 isn't just about large-scale production adjustments; it's about scrutinizing every tiny detail. Musk illustrated the cost anatomy of a vehicle, emphasizing the challenge of saving even $0.40 on each of the approximately 10,000 parts in a car.
What This Means for Model 2
All these cost-saving strategies are directly tied to Tesla's aspiration to introduce the Model 2 at an unprecedented price point. By focusing on "pennies" and being "ruthless" in their cost-cutting measures, Tesla is gearing up to deliver a vehicle that doesn't just promise efficiency and sustainability but also unparalleled affordability.
The road to the Model 2 is evidently layered with challenges. Still, if there's one takeaway from the earnings call, it's that Tesla is more committed than ever to making the dream of an affordable electric vehicle a reality for the masses.
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Tesla has officially filed construction permits for its first Semi Megacharger site located near the 405 and 110 freeway corridors in California. This location is just outside Carson, CA, near the Port of Long Beach—one of the busiest ports in the U.S.
The site, located at 19300 S Hamilton Avenue, will primarily feature Megachargers designed to support Tesla’s electric truck fleet. Additionally, Tesla plans to include a small lounge facility with vending machines, restrooms, and other amenities for drivers.
Semi-Public
This site is considered “public” because it’s the first Megacharger location built on publicly accessible land, conveniently situated off a major highway. Previous Megacharger sites have been installed at private corporate facilities, making them inaccessible to the general public.
Despite being in a public location, Tesla plans to keep these Megacharger units exclusive to the Tesla Semi, unlike Superchargers, which are gradually opening to other EV manufacturers. While the Megacharger standard—MCS—is an open standard like NACS, Tesla’s Megachargers will remain off-limits to other trucks.
Megacharger
The Megacharger features a large, square-shaped connector, a sharp contrast to the NACS design. This is due to the unique operating specifications of the MCS connector, which supports charging between 750kW and 1,000kW. This incredible power could potentially add up to 400 miles (of the Semi’s 500-mile range) in just 30 minutes of charging.
With such rapid charging capabilities, the Tesla Semi’s downtime will be drastically reduced, allowing for more efficient operations and less time spent charging.
With volume production expected to begin in late 2025 or early 2026, the Tesla Semi is poised to become one of the company’s biggest products. We’re excited to see more Semis on the road—and hopefully, many more Megacharger sites in the near future.
The Cybertruck has finally received an official crash safety rating—and to the surprise of many critics, it’s outstanding. Tesla has announced that the Cybertruck earned a 5-star Overall Crash Safety Rating from the NHTSA.
Even more remarkable, the Cybertruck holds the lowest overall probability of injury and the lowest rollover risk of any pickup truck ever tested by the agency. Skeptics have long questioned its safety, arguing that its rigid design lacks crumple zones and could endanger occupants. But these results prove otherwise. Let’s break it down!
The Test
Sawyer Merritt
The 2024 and 2025 Tesla Cybertruck—both the AWD and Cyberbeast variants—were tested under the New Car Assessment Program (NCAP) standards, which evaluate vehicle crashworthiness and restraint systems through various types of impacts.
Tesla has long prioritized safety, not only through advancements in active safety with FSD but also by designing vehicles with robust structural protection. The Cybertruck incorporates the Cybercell structural battery and internal crash cans to improve crash performance.
Its front and rear Gigacastings are engineered to channel impact forces into internal structures that collapse, functioning similarly to crumple zones in traditional vehicles. This design directs energy away from occupants and critical components. First, the internal crash cans absorb the force, and if needed, the Gigacasting collapses—both of which are replaceable, making the Cybertruck more repairable when compared to other modern vehicles.
Euro NCAP
Sawyer Merritt
While the Cybertruck has now earned a North American NCAP rating, it has yet to receive a Euro NCAP rating. Tesla has not submitted the Cybertruck for testing in Europe, as its sharp-edged stainless steel panels do not currently meet European regulations.
Tesla does plan to bring the Cybertruck to Europe eventually, but doing so will likely require significant exterior modifications to soften its edges and comply with safety standards. Once those changes are made, the Cybertruck should have no trouble acing the Euro NCAP tests.
After such a long wait, it’s great to finally see the Cybertruck’s crash test results—and with a 5-star rating, Tesla deserves credit for its impressive engineering. Safety has always been a cornerstone of Tesla’s design philosophy, and the Cybertruck continues that tradition as one of the safest vehicles on the road.
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