Tesla will sell an affordable electric car for $25,000 within the next three years, CEO Elon Musk announced on Tuesday.
The new vehicle model has no name yet.
Musk said an electric passenger vehicle with a more affordable price that could compete with fossil-fuel-powered cars has long been a goal.
“This has always been our dream from the beginning of the company,” Musk said.
Musk said the cheaper vehicle will be able to be produced thanks to innovations from Tesla’s new battery, which would increase vehicle range by up to 54% and decrease production costs by over half.
During its Battery Day event Tuesday, Tesla executives said a lower price — which would increase demand — would help the company scale up its production.
“For a lot of people, they want to buy a Tesla [but] they simply don’t have enough money,” Musk said. “If somebody does not have enough money, they can’t buy it.”
Musk said it’s “absolutely critical” that Tesla produces and sells cars that customers can “actually afford.”
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