Tesla provides some of the most revered electric vehicles on the market. Not only are their cars luxurious, highly advanced, and fun to drive, but they also expensive. But will Tesla cars ever get cheaper?
Tesla cars will get cheaper in a few years’ time. In September 2020, Teslas CEO, Elon Musk announced technology that he says will make Tesla batteries cheaper and more powerful. In a statement, he said, “This has always been our dream to make an affordable electric car.”
During the live presentation which Dr. Elon Musk marked as ‘battery day,’ he as well as teased the likelihood of a $25,000, fully autonomous Tesla in about three years’ time. To put this into perspective, the cheapest electric cars in the market have a sticker price of about $30,000, meaning the affordable Teslas will be even cheaper.
The technology that will make Tesla cars cheaper is Tesla’s new bigger cylindrical cells. Musk claims that these batteries will offer five times more energy, six times more power, and 16 percent better driving range. However, this technology may take years to be fully implemented.
Why are Teslas expensive?
If you’re considering getting a new Tesla, you will have to part with several thousands of dollars. This is because the least expensive Tesla model goes for about $41,190, which is the Tesla Model 3 Standard Range Plus model. On the contrary, the most expensive Tesla model is the Tesla Model X Plaid with a price tag of $121,190.
With such exorbitant prices, it’s easy to see why most people view Tesla as cars for the rich and not ordinary citizens. To give you a clearer idea, the average price for a new midsize car was around $25,000 in 2020, while that of a mid-priced SUV was about $33,000, according to Kelly Blue Book.
If you’re wondering why Teslas command such a huge price, here’s why:
- High demand
The main reason why Teslas are expensive is because of high demand and low supply. There are many people who have ordered Teslas and are still waiting for their cars to be delivered. As the race for electric cars heats up, Tesla is way ahead of its competition and that’s why many people prefer Tesla over other brands.
Tesla is the most preferred electric car on the market because of its advanced technology and excellent range. Many electric cars don’t have an excellent range, making many buyers go for Teslas. On top of that, many few main car brands don’t have fully electric cars but they are joining the race.
What’s more, the high demand for Tesla vehicles has also been pushed by the green energy movement. Since Teslas are all-electric, this means that they don’t produce carbon dioxide. Therefore, they do not pollute the environment like gasoline-powered cars. So, people who support this movement are rushing to get all-electric cars like Tesla.
- Low production
Even as demand for Tesla cars is high, the production is very low. At the moment, Tesla does not have enough factories that are capable of handling the high demand. Hence, it can only produce a few cars, unlike most traditional car brands that have factories worldwide.
- Expensive battery technology
Another major reason why Tesla is expensive is because of the high cost of its battery technology. Tesla’s batteries are the most costly single part of the Teslas. For instance, the Tesla Model S battery costs about $30,000, which is about 42% of the car’s price. This is quite costly.
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How does Tesla plan to make its cars cheaper?
The good news is that Tesla is planning to reduce the cost of its cars in the next 3 years. Even though this may take slightly longer, it’s great news for the green energy movement. Many electric car users will be able to afford a Tesla as they plan to produce cheap cars with a starting sticker price of up to $25,000.
- Reduce production cost
One of the ways through which Tesla plans to reduce the cost of its cars is to lower its production cost. Tesla’s main factory is located in Fremont, California, where its cars and most of the parts are produced. Nonetheless, the company has plans to double the capacity, to almost 10 million square feet.
What’s more, Tesla is building a massive factory in the Nevada desert that it says will be the biggest in the world. Besides, Tesla is already using one completed section of the new factory to build its batteries. Additionally, Tesla has expanded abroad with its new Shanghai factory.
With this expansion, Tesla will ramp up production and reduce manufacturing costs, which will also lead to reduced prices of Tesla cars.
- Build new battery technology
The main reason why Tesla cars will become cheaper in the future is because of the battery technology that Tesla is working on. The company intends to reduce the cost of making batteries, but at the same time to create energy-efficient batteries.
Are Tesla cars overpriced?
Yes and no. Tesla cars are overpriced because the company is taking advantage of the high demand. However, these cars are worth every dollar as they come with the best battery technology. On top of that, they are highly advanced when compared to other all-electric vehicles.
Is it expensive to maintain a Tesla?
No, it’s not expensive. When you consider the cost of maintaining other popular luxury cars like BMW, Mercedes-Benz, Audi, and Porsche, you will find that it’s cheaper to maintain a Tesla. Besides, Tesla provides a factory warranty for all of its models and an extended service agreement for Tesla Model X ad Model S.
How long do Teslas last?
The durability of a Tesla is determined by its battery life. Most Tesla models can last for 8 years. Nevertheless, you can replace the battery and have your car running smoothly. But since Tesla has not been in existence for more than 20 years, it’s quite difficult to tell how long it will last.
If you have been wondering whether Teslas will get cheaper, you don’t have to. Yes, Teslas will get cheaper as the company is expanding and building new plants. Also, Tesla is improving its battery technology, which makes up 42% of the total car price. With the new battery technology, Teslas will become more affordable.