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Tesla Accelerates Toward Affordable Autonomy with New Sub-$30K Model and AI-Powered Robotaxi Initiative

Word on the StreetWednesday, Oct 23, 2024 9:00 pm ET

1min read

Tesla's recent Q3 earnings report revealed a revenue of $25.182 billion, marking an 8% increase, and a net profit of $2.167 billion, up 17%. Although revenue fell short of analysts' expectations, adjusted EPS surpassed forecasts. Following the release, CEO Elon Musk and other top executives discussed the results and future plans with analysts.

During the discussion, Musk confirmed Tesla's intention to launch a more affordable vehicle next year. As emphasized by Lars Moravy, VP of Automotive Engineering, the plan aims to make sustainable vehicles more accessible, aligning with Tesla's mission to lower costs and increase adoption. Moravy also highlighted the upcoming introduction of AI-powered Robotaxi, aiming to further reduce the initial cost of electric vehicles.

Musk stated that the new model should not exceed $30,000, designating this figure as a critical price point. He stressed that the future lies with autonomous electric vehicles and that driving a non-autonomous gasoline car in the future would be as uncommon as horse riding today.

Musk noted that almost all Tesla vehicles are prepared for autonomous operation, and the company is making strides in manufacturing efficiency, producing approximately 35,000 vehicles weekly. Despite other manufacturers being slow to adopt this vision, Musk reiterated Tesla's commitment to leading in this domain.

Moravy assured that Tesla's vehicles maintain a conventional appearance, while Musk added that unique models like the Cybertruck and CyberCab offer a futuristic design, reflecting a revolutionary shift in automotive manufacturing. Tesla's proprietary manufacturing processes, difficult to replicate without acquiring a Tesla facility, underscore the brand’s innovative edge.

Musk dismissed the viability of producing a standard model priced around $25,000, aligning with Tesla's core philosophy. Instead, the focus remains on driving down per-mile costs and advancing autonomous technology. The CyberCab, devoid of steering wheels and pedals, will cater to users keen on affordable autonomy, priced under $30,000.

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