Tesla Promises Affordable $25,000 EV and Bold Delivery Growth at Battery Day
Tesla CEO Elon Musk announces a 30% to 40% increase in vehicle deliveries for 2020 alongside a new battery design aimed at cutting production costs. The company also sets a three-year goal to produce a fully autonomous, $25,000 electric car.
Tesla CEO Elon Musk reveals that the company expects vehicle deliveries to grow by 30% to 40% in 2020 compared to last year. This new guidance points to a total of roughly 478,000 to 514,500 cars delivered, which meets the company's long-standing goal of half a million deliveries for the year. Musk notes this growth occurs despite challenging global circumstances.
During the highly anticipated Battery Day event, Tesla introduces a new, larger battery cell known as the "4680" that the company designs and produces at its Fremont facility. Because batteries represent the most expensive component of an electric vehicle, these new cells play a crucial role in the company's strategy to reduce manufacturing costs and appeal to mainstream buyers.
Musk confidently predicts that these manufacturing and battery advancements will allow Tesla to sell a fully autonomous electric vehicle for $25,000 within three years. However, he cautions that Tesla's profit margins remain thin at around 1%, meaning the company must carefully balance competitive pricing with financial survival. Investors react cautiously to the presentation, causing Tesla shares to drop as much as 7% after the announcement.