Tesla to announce new cheaper EV platform

Tesla will hold an Investor Day event on March 2 (Australian time) and is set to debut its long-awaited cheaper third-generation electric vehicle platform.

Despite on-and-off reports of an affordable sub-$40,000 EV hatchback, it is seemingly now confirmed.

According to Teslarati, CEO Elon Musk told investors in an earnings call last year that the third-gen version will be roughly half the cost of the second-gen Model 3 and Model Y platform, can be produced more quickly with higher outputs than all other Tesla vehicles combined, and feature smaller dimensions to cut manufacturing costs.

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It is poised to compete against affordable Chinese-made EV entrants such as the BYD Dolphin, MG 4 and GWM Ora Funky Cat that have the advantage of cheaper manufacturing costs due to locally-made batteries, a domestic supply chain and cheaper labour costs.

It’s unclear whether a prototype vehicle will be revealed, but the announcement suggests it’ll only discuss the third-gen platform’s features. Musk may also detail the third part to his ‘master plan’.

“Our investors will be able to see our most advanced production line as well as discuss long term expansion plans, generation 3 platform, capital allocation and other subjects with our leadership team,” the Tesla media release said.

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Reuters also reports the Model 3 is due for a minor update this year to further cut production costs.

Musk already admitted that they slashed production costs from the first-gen Model S and Model X platform to the second-gen Model 3 and Model Y architecture in a 2019 earnings call, according to Teslarati.

It comes as shareholders raise concerns about Musk's focus on Twitter after he acquired the social media platform. Tesla China’s chief has also reportedly been promoted to be the second-highest ranking executive amid the controversy.