Elon Musk teases new details about Tesla's cheaper car that's next up after the Cybertruck

  • The next Tesla after Cybertruck will be more affordable, Musk said.

  • The long-planned, sub-$30,000 Tesla will first be built at the Texas Gigafactory.

  • EV shoppers are desperate for more affordable options.

Elon Musk is already looking forward to the next addition to Tesla's growing fleet of vehicles.

The Tesla CEO told automotive manufacturing expert Sandy Munro that the long-awaited $25,000 Tesla is nearing reality in an interview posted to YouTube following the Cybertruck's launch party.

Musk said his company is "quite advanced" in its work on the affordable Tesla, and that he is reviewing production plans weekly.

"The revolution in manufacturing that will be represented by that car will blow people's minds," Musk said. "It is not like any car production line that anyone's ever seen."

Musk has been teased a sub-$30,000 Tesla since 2020. At the time, he said the more attainable price point could be achieved by halving battery and cell manufacturing costs.

He told Munro that the new vehicle is currently slated for the Texas Gigafactory, where the Cybertruck is currently produced, with a secondary assembly line at the company's planned plant in Mexico.

If Tesla gets to the $25,000 EV first, Detroit is in trouble

The US electric vehicle market has undergone some serious changes in the last 12 months, with the shopping base for these vehicles changing over from wealthy early adopters to more practical buyers looking to switch from gas to electric power.

That has elevated the need for more affordable options in the EV space, creating a gulf between where EV demand actually stands and which EVs are available to purchase today. Many car companies have responded to this change in demand by pulling back production plans while dealers lather on discounts to move these cars off their lots.

Tesla had led the way in a segment-wide dip in average EV prices this year, setting off a price war that has caused headaches for Ford and GM as these companies get their grand electric vehicle plans off the ground.

Adding more affordable options will only make it harder for Detroit car companies and other legacy automakers to compete with Tesla, especially since these companies still aren't turning a profit on their electric cars.

Tesla buyers seem to be more price-sensitive

If the reaction to Cybertruck's pricing is any indication, Tesla itself is not safe from the changes in price sensitivity in the EV segment.

Pricing for the Cybertruck was finally released last week, with the cheapest option (not available until 2025) starting at almost $61,000 – $20,000 more expensive than Musk originally promised.

While these prices are in line with where EV truck prices stand right now, some order holders told Business Insider they were counting on a more affordable option with the Cybertruck.

Read the original article on Business Insider