E-car maker outlines cost-cutting plans, few details on new vehicle models.
Tesla CEO Elon Musk presented his plans for the company at an investor day on Wednesday. These go far beyond the production of high-end e-cars, because in addition to battery storage and solar systems, heat pumps for houses are to be produced in the future. Above all, Musk wants to cut costs. Chief Financial Officer Zach Kirkhorn spoke of halving production costs for Tesla’s next generation of vehicles, Bloomberg reports (paywall).
Cheaper models could help the company make its way into the mass market; currently, the cheapest Tesla costs just under $44,000. This could be achieved through new production processes, but also by omitting certain components, such as the sunroof, which Tesla owners would hardly use, as one manager explained.
It was also announced that work was being done on a motor for future models that would not require the use of rare earths. The company did not say which material would be used in the future or when it would aim to have it ready for series production. However, the share prices of Chinese rare earth producers fell significantly in the wake of the announcement, according to Bloomberg. But Tesla’s stock also took losses shortly after the event. Investors had expected the unveiling of new vehicle models, especially a low-cost vehicle, writes Reuters news agency.