Tesla Third Generation EV to be Cheaper; Wider Charging Networks Offered

April 12, 2013 / 1 Comment

Tesla is planning big; they say they will be making cheaper EV, but different from the the ditched 40 kWh Model S. They will also provide widespread supercharging stations and better service by 2016 or at least early 2017. Tesla’s cheaper 40 kWh Model was scrapped on April 1st without any celebration, and the reason they said was that it wasn’t that Telsa enough.

modelx Tesla Third Generation EV to be Cheaper; Wider Charging Networks Offered

More specifically 40kWh was kind of sluggish, according to the Tesla CEO Elon Musk. The 40kWh model was a test for the company to bring more affordability without compromising on performance. But Musk has been quoted as saying that the model didn’t do well for the customers, and was like a “hobbled horse”.  The 40 kWh Model S only accounted for four percent of Model S sales. Now that 40kWh has been abandoned, the cheapest on the Model S options is priced for $70,000.

As an EV manufacturer, they said they have earned their first profit on the first quarter (January 1- March 31) of the current fiscal. The next three or four years will be a humongous challenge for them to maintain the balance between quality and cost reduction.

The Tesla is aiming to make the third generation model to be cheaper than the current Model S sedan. For that, the company will have to cut down costs on the electric drivetrain and battery pack. Their upcoming Model X SUV is facing delay in its launch, and the reason is that they wouldn’t want to repeat the same mistake they did with the abandoned model.

The company will reach the ‘100 supercharger stations’ goal by 2015, and he said “Superchargers will always be free. They will be free forever.”