Tesla To Pursue Lower-Cost Vehicles and Product Updates to Stay Competitive

by Chris Teague

Published: September 10th, 2024

tesla to pursue lower cost vehicles and product updates to stay competitive

Tesla is facing one of the most challenging times in its existence as other automakers are quickly catching up with new EVs and technologies. The company, helmed by Elon Musk, has a plan to stave off the competition over the next few years, which includes introducing lower-cost models, updates to existing products, and a rollout of the long-awaited robotaxi.

The automaker is planning an update for the super-popular Model Y, which could follow the changes seen with the new Model 3. That would mean a sharper look and an updated interior with new tech features. The Model X will likely be left alone for the foreseeable future, but the recently released Cybertruck could get an update by 2028.

Interestingly, Tesla offers a Model 3 variant in Mexico with cloth seats and without the eight-inch rear screen, which could lower costs for Mexican buyers. Americans don’t have that option yet, as our Model 3 still gets the usual standard synthetic leather and rear touchscreen.

Despite its push toward autonomous taxis, Tesla is expected to continue developing more affordable models with price tags that start at around $30,000. That said, Tesla reportedly scrapped the previously expected lower-cost model in favor of the robotaxi program. We don’t have any other details about the vehicle(s), but the company apparently hasn’t given up on autonomous people movers.

[Images: Tesla]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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6 of 42 comments

Kcflyer on Sep 11, 2024
Here's a suggestion. Make the Model 3 interior as nice and user friendly as that found in a mid level Nissan Rogue. Is that too much to ask?

2 Reply
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- SCE to AUX on Sep 11, 2024
  It was obvious from the beginning that the volume Model 3 was stripped to the bone in order to be profitable. Its robust sales and profits mean Tesla has no incentive to upgrade its interior, sadly.
  
  1
- EBFlex on Sep 12, 2024
  How about the offering the vaporware $35K Model 3 that was promised? Instead, the cheapest Model 3 is actually just over $47K (with my states sales tax rate)
  
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The Oracle on Sep 11, 2024
Tesla is going full steam on construction of their massive data center in Austin, they are up to something. The Giga-press there also has the potential for a one-shot entire undercarriage and other main structure with minimal secondary processing, which would greatly reduce assembly and conversion costs. Why not offer a little 150-200 mile range city car?

1 Reply
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- 1995 SC on Sep 12, 2024
  Could such a pressing be repaired if you are in an accident?
  
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- The Oracle on Sep 12, 2024
  I don’t believe so. His stated goal was to make cars like Matchbox cars with a die cast belly and whatever they can dream of up top. Insurers will have to sort that out.
  
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