to produce it costs $ 48,000 less, but prices in 2022 increase

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Investor Relations Chief Tesla Reveals Production Costs Cut By More Than 50% Over The Last 5 Years And Will Continue To Fall

September 14, 2022 – 2:54 pm

THE production costs of Tesla cars they have always been at the center of continuous optimization by the company. The innovative and highly automated processes would be the flagship that allowed to break down up to 42% the costs to produce a Tesla compared to 5 years ago. This is what the head of investor relations would have declared during a confidential event. Yet in the meantime i Tesla prices continue to riseeven if in a variable way the increases are more evident on specific set-ups based on the market.


Was Martin Viechahead of investor relations Tesla at a Goldman Sachs technology conference to talk about the milestones obtained by the company in cutting production costs. As reported by Insideevs, during the meeting that took place behind closed doors in San Francisco, Viecha explained that a benchmark to be carefully observed in the coming years is production costs, to understand how many cars a company can produce and what growth forecasts can Do. The manager explained how Tesla managed to reduce the average costs for the production of electric cars from $ 84,000 in 2017 to $ 36,000 in 2022. A cut – Viecha would have assured – obtained without seeking compromises on the quality of Tesla batteries (in this article we explain the differences between Tesla cells).


The simplification of production processes is the key factor according to Viecha that has allowed to reduce the costs of producing the Tesla. Taking the Tesla Model Y as a reference, the manager said they are still there large margins for reduction as each factory increases its production regime. But he also claimed that the Tesla factory a Fremont (California) is not an optimal plant for the production of electric cars on the cost side, when compared to more recent plants a Shanghai And Berlin. Further savings should then be attributed to the use of 4680 cells and structural battery (about $ 5500 for each car).



Meanwhile, however, the increase in Tesla car prices in the US and Italy does not go unnoticed and the magazine specializing in electric cars has always traced its rise:

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– price Tesla Model 3 Standard Range from € 54,990 to € 57,490 (+2.500 eurosin Italy in June 2022);

– price Tesla Model Y Long Range from 62,474 euros to 65,990 euros (+3.500 euros, in Italy in June 2022). However, the entry into the list of the Tesla Model Y in Standard Range setup has lowered the access price starting from 49,990 euros.

The article is in Italian

Tags: produce costs prices increase

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