Tesla: A plan to Dominate the EV market with sub $25,000 model

The tesla model 3 is Tesla’s best selling car with a starting price of $37,990 in the US and this starting price varies depending on where you find yourself in the world. It is a great car for all everyday driving needs but to the majority of people who only need a car to get to work and back and for everyday errands, spending almost $ 40,000 on a compact car may be an overstretch.
to build a car that is truly meant for the masses that will be affordable and also accelerate the world to sustainable energy, which has been and continues to be Tesla’s goal, you would need that car to cost less than $25,000. This would enable the vast majority of the people to drive cars that are environmentally friendly and sustainable.
If you look at how much an average petrol car costs without all the fancy technology and aesthetics, you would be looking at about $17,000-$25,000. So having a car that sits in the price range will greatly increase Tesla’s sales and enable most people to switch to an electric car in a very short time span. But here is the catch, the technology needed for a car like that is very expensive almost non-existent.
Tesla’s Battery Day event will take place on September 22, which would be live-streamed. It is just around the corner. The new battery that tesla would most likely reveal on the coming battery day will enable tesla to make a compact car for less than $25,000
Elon Musk, who is not happy with the concept design of the proposed compact car from china is asking people with design skills to submit designs. This compact car is definitely not going to be an ordinary hatchback. Elon Musk said in China that he wants a car that people will love and be able to afford. The ultimate goal for Musk is to get everyone on board with the EV car love. The best and easiest way to do it is by having an affordable compact car that is attractive and fun to drive.
By announcing that the company will be taking design submissions for its Chinese made small electric car, Tesla is clearly out there to turn heads with their new affordable compact car. What a great way to brainstorm with the global design community. When Tesla wants to be different with the design of their new compact car, you should believe them. Tesla surprised everyone when they revealed the Cybertruck. The design was polarising, something straight out of a science fiction movie or a video game. It was a controversial design, but what it says about Elon Musk is the fact that he likes to think out of the box. He does not want a conventional design for a car that he expects to change how people react to EVs.
Countries all over the world are trying to shift mobility to sustainable energy vehicles and Electric cars are currently leading the way. Japan, China, India, Norway, and even the US all have some form of incentive for their citizens to drive electric cars. And the only way these actions can be widely successful is when these EVs become affordable. Tesla knows this so well and they might just hit it right on the nail.
Yes other manufacturers like Hyundai, Kia, GM(Chevrolet), Renault, etc are also making serious efforts in making the electric car affordable to the masses. But Tesla has something that these other manufacturers do not have yet, Tesla cult-like following and hype is a huge advantage for its models; Elon Musk brags about Tesla have a $0 advertising budget. What this means is anything tesla makes will likely sell out without any form of advertisement.
Until recently, the thought of an affordable electric compact car has always been a mirage due to the cost of batteries. Battery forms the most expensive component of any battery electric vehicle. Now the price of batteries is coming down. At $100/kWh for Tesla battery Cells, it is a significant drop compared to when EVs started going mainstream. This definitely brings down the price of EV below $25,000.
For instance, a 40kWh battery Pack could well produce an approximate range of about 200 miles( 320km) on a single charge. For most people and their everyday commuting, this should be enough if they do the regular charging at the end of their daily activities. This range only becomes a problem when you are planning a long trip, however, that might actually require a bigger car rather than the small compact car. For extra safety and cargo space, most people use bigger cars if they have it, or rent one for the trip.
The Model 3 is by far tesla’s most successful model, but if Tesla is able to pull this off, even the model 3 will be no match for the new yet to be named compact car. It is expected to be a very popular model globally.
What could possibly be a challenge for the success of this compact car? Battery production and availability.EV manufacturers all over have a major challenge with batter supply. There is not enough battery production capacity for the current demand. Many manufacturers halt production because of the inadequate supply of batteries. Tesla is trying to overcome this by building more battery manufacturing capacity in order to meet the expected demand for this compact car.
Tesla will most likely reveal this new compact car in 2021 until then we can look at other affordable options currently on the market. Cars like Hyundai Kona Electric, and the Hyundai IONIQ electric, the popular Nissan Leaf, Chevrolet Bolt, and Kia Niro EV.