Tesla Offers a New ‘Master Plan’ but Few Big Revelations

There has also been speculation that Mr. Musk will revive plans for a Tesla vehicle that would be less expensive than the Model 3, which starts at $43,000 in the United States. Mr. Musk spoke of a $25,000 car in 2020, but he later seemed to quash the idea. Whether the car would be so affordable when it goes on sale is another question. Mr. Musk and Tesla had said the Model 3 would cost $35,000 before it went on sale in 2017, but few were sold at that price. Since then, the car’s price steadily climbed before Tesla lowered it a bit in January.

Analysts and investors have expressed concern that Tesla has been too slow to introduce new vehicles and respond to carmakers like Hyundai, Volkswagen and Ford Motor that have brought out a wide variety of new electric models, many much cheaper or very different from Tesla’s four models: the S, X, 3 and Y. General Motors plans to begin selling three new electric vehicles this year, including an electric version of the Chevrolet Equinox crossover that will start at around $30,000.

Investors also expected Mr. Musk to make an announcement about battery technology. He could say that Tesla is stepping up production of its 4680 battery cell, which can be manufactured more efficiently than older designs and packs more energy per pound. One of Tesla’s main selling points has been its batteries, which provide more range and faster charging than many of the models offered by other manufacturers.

The splashy event at Tesla’s factory in Austin, Texas, is clearly a response to investors who have complained that Mr. Musk’s acquisition of Twitter last year diverted his attention and left him less focused on his car company.

In China, the automaker BYD has surpassed Tesla in electric vehicle sales, challenging the notion that Tesla is poised to dominate the auto industry as battery-powered cars increasingly supplant gasoline models. BYD is now making a big push into Germany and other European countries, threatening to undermine Tesla’s dominance there.

Article source: https://www.nytimes.com/2023/03/01/business/tesla-musk-investors.html