Elon Musk unveils exciting details on Tesla's upcoming small electric car

Tesla CEO Elon Musk is eager to expand the company's reign in the electric vehicle (EV) market by offering a diverse range of products, including a more affordable EV. Although he had previously stated his desire for a product cheaper than the current most affordable Tesla Model 3, Musk has now shared crucial details about the upcoming smaller EV.

Tesla is developing a new electric vehicle that is expected to be significantly more affordable than their current offerings. According to CEO Elon Musk, the new EV will cost about half as much to manufacture as the Model 3. Musk also revealed that the car will operate mostly in autonomous mode, but he did not provide any timeline for its release. These details are significant, given that Musk has previously acknowledged that Tesla's current EVs are desirable but not affordable for many consumers.

For Tesla, prioritizing affordability is crucial in order to tap into new markets and achieve its goal of producing 20 million EVs annually by 2030. To make this happen, the company has been exploring potential locations for new production facilities and is said to be in talks with Mexican officials for the construction of the world's largest EV factory.

In addition to the focus on affordability, Musk has stated that there are valid reasons to have a Tesla EV priced around $25,000 (approximately ₹20.52 lakh). Currently, the cheapest Tesla model available is the Model 3, priced at around $43,000 (approximately ₹35 lakh).

Tesla has already made efforts to attract more buyers by announcing price cuts in various markets, such as the US and China, which has led to competitors following suit. However, to succeed in new markets, particularly in developing countries, the company will need to maintain an affordable pricing structure. This is where the upcoming smaller EV could play a critical role.