Tesla Provides Update on 'Model 2', Its $25k Car, During Earnings Call

By Kevin Armstrong
Tesla's gives an update on its upcoming more affordable vehicle
Tesla's gives an update on its upcoming more affordable vehicle
TopElectric/YouTube

The third-quarter earnings call for Tesla offered intriguing insights into the direction and focus of the company's upcoming next-gen vehicle, dubbed the Model 2 or the $25,000 car.

While drawing on a comparison to Cybertruck's production challenges, Elon Musk declared this vehicle will be more conventional for production with the overarching goal of achieving an unmatched level of manufacturing efficiency.

Functional Beauty: The Aesthetic Vision

The next-gen car is predicted to be the most produced car in Tesla's lineup, with the potential scale and reach of the Model 2, with implications suggesting it could match the combined volume of other Tesla models. The "high-volume, low-cost" will be simpler in design and technological features to achieve a production speed unprecedented in the auto industry. The mention of achieving "units per minute level that is unheard of" paints a picture of Tesla's commitment to scale and affordability.

Breaking away from the enchantment often associated with Tesla vehicles, Musk set the stage for a different kind of vehicle in the Model 2. Described as "utilitarian," this new vehicle won't be about enchanting consumers but serving a functional purpose. Despite this, Musk reassured that the car will still bear Tesla's signature beauty.

The Quest for Affordability

A dominant theme throughout the call was the relentless push towards reducing costs and improving operational efficiencies. Vaibhav Taneja, Tesla's Chief Accounting Officer, pointed out the myriad challenges and variables in managing product margins, especially given the ongoing factory upgrades.

Nevertheless, company representatives remain unwavering in their dedication to cost reductions for 2024, showcasing Tesla's commitment to affordability. As Taneja describes, this "cost attack" strategy involves meticulous examination and improvement of every line item, highlighting Tesla's dedication to affordability at every turn.

Musk equated their cost-reduction strategy to a "Game of Thrones" where even saving pennies mattered. Musk highlighted the importance of such savings, highlighting how even small elements, like unnecessary internal stickers or QR codes, are being scrutinized for their contribution to the vehicle's cost.

Driving down the costs for the Model 2 isn't just about large-scale production adjustments; it's about scrutinizing every tiny detail. Musk illustrated the cost anatomy of a vehicle, emphasizing the challenge of saving even $0.40 on each of the approximately 10,000 parts in a car.

What This Means for Model 2

All these cost-saving strategies are directly tied to Tesla's aspiration to introduce the Model 2 at an unprecedented price point. By focusing on "pennies" and being "ruthless" in their cost-cutting measures, Tesla is gearing up to deliver a vehicle that doesn't just promise efficiency and sustainability but also unparalleled affordability.

The road to the Model 2 is evidently layered with challenges. Still, if there's one takeaway from the earnings call, it's that Tesla is more committed than ever to making the dream of an affordable electric vehicle a reality for the masses.

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New Model 3 Performance, Racing-Inspired Seats Revealed, a Glimpse of the Front Splitter

By Kevin Armstrong
X/Nic Cruz Patane
X/Nic Cruz Patane

Tesla's reintroduction of the Model 3 Performance continues to inch closer, and just like the refreshed Model 3 and the Cybertruck, every peek gives us some more hints and builds more excitement. A recent observation of a partially covered Tesla Model 3 Performance prototype revealed the new Sport seats designed for improved comfort.

Posted on X by Nic Cruz Patane, the upgraded Model 3 Performance was sighted in Santa Monica, where the vehicle's engineering prototype displayed minimal window tinting, offering a sneak peek at the vehicle's improved seating. The Sport seats, resembling dedicated racing bucket seats, significantly depart from the current Model 3 seating options.

Sport Seats Coming to Other Models?

Tesla's initiative to incorporate Sport seats into the Model 3 Performance hints at broader plans to equip its high-performance models, including the Model S Plaid, Model X Plaid, and Model Y Performance, with similar seating options. This move will elevate the driving experience across Tesla's performance vehicle range.

These seats were also spotted a few weeks ago by enthusiast Fidel Grandez. Initially thought to be designated for the Model S Plaid, these Sport seats have found their rightful place in the Model 3 Performance, aligning with Tesla's vision for a performance-focused yet more affordable electric sedan.

New Wheels and Front Lip

In addition to the seats, the Model 3 Performance is rumored to showcase a suite of enhancements. Another angle gives a little bit of an outline of the new front lower splitter. Other aesthetic and functional upgrades include "Warp" 20-inch wheels, advanced braking systems, and revised suspension components.

Tesla has been testing the Model 3 Performance prototypes for a few months, signaling that initial production could be underway in North America. This step is crucial as Tesla aims to reintroduce the Performance trim to the market, having temporarily removed it from their lineup. The reintroduction is timely, considering the evolving landscape of EV incentives in the United States. While the official launch date remains under wraps, anticipation builds for the Model 3 Performance's debut, expected in the first half of 2024.

Cool Carpool Mom: How Kim Kardashian's Cybertruck Ride Benefits Tesla

By Kevin Armstrong
Instagram/Kim Kardashian
Instagram/Kim Kardashian

Kim Kardashian showcased her Cybertruck with the caption "cool carpool mom" to her 364 million followers on Instagram. The A-list celebrity and billionaire is well known for her knack for staying at the forefront of trends, making this one image a powerful endorsement for Tesla. The picture of one of the most influential celebrities of our time picking the Cybertruck as her distinctive vehicle speaks volumes about the brand's penetration into popular culture and its appeal to a broad demographic, including those who value style, innovation, and sustainability.

The Power of Celebrity Influence

Kim Kardashian's influence cannot be overstated. Her every move is watched and often emulated by fans around the globe. Her journey from reality TV star to billionaire entrepreneur has been marked by a series of successful ventures in fashion, beauty, and technology investments, making her a model of modern business acumen. Kardashian's ability to turn personal endorsements into significant trends is unparalleled, making her engagement with Tesla's Cybertruck a notable moment for the company.

Kardashian's influence extends far beyond mere product endorsement. Her strategic use of social media to connect with her audience has transformed how brands interact with consumers. She creates a personal connection that can sway consumer behavior by sharing her life, interests, and choices, including her vehicle preferences. Her endorsement of the Cybertruck can significantly enhance Tesla's brand visibility and desirability, particularly among consumers who may not have previously considered an electric vehicle.

Kardashian has recently joined the exclusive circle of celebrities seen driving the Cybertruck, a group that boasts names like Pharrell, Lady Gaga, Jay Leno, and not to forget Elon Musk himself (who, aside from being Tesla's CEO, commands a staggering following of over 370 million on X). Each of these stars wields significant influence, captivating audiences that range from thousands to millions globally.

Sustainability Meets Style

Moreover, Kardashian's endorsement comes at a time when the importance of sustainable living and eco-friendly choices is increasingly recognized. Her choice of an electric vehicle over traditional gasoline-powered cars sends a strong message about the importance of environmental responsibility, aligning with Tesla's mission to accelerate the world's transition to sustainable energy. This alignment boosts Tesla's brand and promotes a broader cultural shift towards sustainability.

In the context of celebrity endorsements, Kim Kardashian's showcase of the Tesla Cybertruck is a masterstroke. It merges the worlds of entertainment, technology, and sustainability, highlighting the evolving nature of brand-consumer relationships in the digital age. Tesla's innovative approach to vehicle design and its commitment to sustainability is amplified by Kardashian's endorsement, illustrating the power of celebrity influence in shaping consumer preferences and driving societal trends.

Ultimately, Kardashian driving a Cybertruck and branding herself as a "cool carpool mom" is a significant endorsement for Tesla, enhancing the brand's visibility, appeal, and alignment with sustainable values. In an era where brand success is increasingly tied to social influence and cultural relevance, Tesla's association with Kardashian can only be seen as a positive development, driving the brand further into the mainstream consciousness and reinforcing its position as a leader in the shift towards a more sustainable future.

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