Most Tesla Inc. (TSLA) bulls have lamented about a lack of a sub-$30,000 car in the electric vehicle maker’s product pipeline. Ahead of the company’s March 1 Investor Day, New Street Research analyst Pierre Ferragu shared his thoughts on a budget model.
The low-end car, which some refer to as Model 2, will likely be 15% shorter and 30% lighter, with a 25% smaller-sized battery, relative to the Model 3, Ferragu said in a series of tweets. The Model 3 is currently Tesla’s cheapest vehicle.
The Model 2 sedan production cost will likely be 37% less than the Model 3, with half of the difference coming from the car being smaller and the remaining half mostly from design, architecture and manufacturing innovations, Ferragu said. Including the full-self driving hardware, the cost of manufacturing will likely be $21,600 at scale, he added.