Tesla has managed to cut the price of its electric cars in half over five years, and it might do it again with its next-generation vehicle platform.
Much has been said of Tesla’s prices lately.
Despite its high prices, Tesla has attracted some non-luxury buyers over the years who have been willing to pay a premium to go electric, but it remains a luxury brand.
As a premium brand, the automaker competes primarily with other luxury brands like BMW, Mercedes-Benz, Audi, and Lexus.
But it has been gradually going down market over the years – albeit for massive price increases over the last two years that put even its entry models out of reach of most buyers.
As we previously reported, the price drop might have started a new EV price war, and Tesla is in a great position to win that war thanks to its industry-leading gross margin.
The automaker has managed to cut its average sale price by half since 2017 while improving its operating margin from negative 15% to now more than 15% in the black:
That’s despite prices going slightly up in 2022, breaking the trend for the first time.
However, prices are expected to go down significantly in 2023 with the big price cuts to start the year.
But it’s most exciting to look into the future as there’s potential to see Tesla’s prices cut in half, or close to it, again over the next five years – thanks to its next-generation vehicle platform about to be unveiled.
Tesla third-generation platform
The Model S and Model X were based on Tesla’s first-generation vehicle platform. Model 3 and Model Y were based on the second generation – even though Model Y ended up featuring many improvements over Model 3.
Now Tesla is getting ready to unveil its third-generation vehicle platform at its Investor Day on March 1.
There are not many details available about Tesla’s new platform, but it is expected to focus on reducing cost and improving manufacturability to achieve a new level of scale.
More specifically, the new platform is expected to take advantage of Tesla’s 4680 battery cell, structural battery pack design, and its latest large casting technology to achieve a new level.
The plan is expected to include Tesla’s deeper involvement through the entire battery material supply chain, including more factories to refine minerals like lithium and nickel, as well as more vehicle and battery factories.
This supply chain and manufacturing plan along with the new vehicle platform is likely to enable Tesla to produce vehicles in new categories – even potentially an eventual $25,000 compact vehicle that would increase Tesla’s scale and greatly reduce its average sale price.
Electrek’s Take
It’s hard for people to imagine Tesla ramping up to 20 million vehicles per year, but it was also hard for most people to imagine Tesla ramping up to 1 million units.
The company not only did that, but it now sits at a capacity to produce 2 million cars per year.
It won’t be easy to 10x that capacity in seven years, but I think it’s doable.
However, production is just one side of things. Tesla also needs cheaper offerings in order to have the demand for anything near 20 million vehicles per year.
If the automaker achieves self-driving capability, it would certainly be an easier sale, but putting that aside, Tesla is likely limited to about 3 million potential sales per year with its current lineup.
Electric pickups, like the Cybertruck, could bring that up to 5 million units without having to average down the sale price, but everything else will likely have to come from new segments lower than $40,000.
That’s why all eyes should be on that presentation on March 1 since it should give us a better idea of how Tesla plans to deliver on those ~15 million vehicles per year that are hard to imagine right now.
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Chevy is resurrecting both the Spark and EUV nameplates with the all-new, affordable Chevy Spark EUV. GM hopes its new, 249-mile range EV will be a “game changer” that helps accelerate the company’s EV transition in export markets.
Meet the all-new 2026 Chevy Spark EUV – a compact, Bronco-lookin’ four-door crossover that’s ready to take South America, Africa, and the Middle East by storm.
Big style, tiny package
2026 Chevy Spark EUV; via GM.
Like its Baojun-badged siblings, the new MY2026 Chevrolet Spark EUV is powered by a single 75 kW (101 hp), 180 Nm (130 lb-ft) motor driving the front wheels. Power comes from the Baojun’s 42 kWh LFP battery that, with regenerative braking, is good for up to 360 km (220 miles) on the NEDC driving cycle.
Built to turn heads and spark excitement, the 2026 Chevrolet Spark EUV debuts in the ACTIV trim, boasting a bold, boxy exterior, a sleek two-tone roof, and sporty 16” wheels. Compact yet spacious, it’s the perfect everyday runner, offering seamless balance of practicality, driving dynamics and personality.
And for those who love to stand out, the Spark EUV offers six vibrant color options, including Sea Blue with a Polar White roof, Track Yellow, Tiger Blue, Gentle Gray with a Star Twinkle Black roof, and Milky Tea. But personalization doesn’t stop there – drivers can further customize their Spark EUV with exclusive accessories like Ground Effects for the front and rear, Side Moldings, Assist Steps, and Side and Rear Storage Boxes.
Whether you’re an adventurer, gaming enthusiast, music lover, sports fan or someone who enjoys pop culture, a range of unique accessories and themes ensures your Spark EUV stands out and feels uniquely yours.
“The Chevrolet Spark EUV is the coolest and most attainable vehicle in its segment – and is positioned to drive EV adoption in the Middle East,” explains Jack Uppal, General Motors Africa and Middle East President and Managing Director. “Not only is it fun to drive, but the Chevrolet Spark EUV also offers customers the chance to personalize their vehicle with a variety of customization options, making it uniquely their own.”
In addition to basically re-using R&D and tooling budgets from the Baojun brand, the 2026 Chevy Spark EUV keeps its price low with relatively low EV tech. The charging, for example, tops out at “just” 50 kW – a far cry from the 300-plus kW from Tesla, let alone the 480 kW from some of the cutting-edge Chinese brands.
The 2026 Chevrolet Spark EUV will be available in UAE, KSA, Bahrain, Kuwait, Qatar, Lebanon, Iraq, Oman, and Egypt later this Summer. No official word on pricing.
Electrek’s Take
I know this is an overseas model with almost no chance of coming to the US – and that’s our loss. A practical, fun, affordable EV like this could do huge numbers if it was priced right. And with the Baojun Yep starting at less than $12,000 US in China, I can’t imagine a sub-20K MSRP would be entirely out of the question.
The 2025 US Electric Vehicle Experience (EVX) Ownership Study from J.D. Power tells us that more people are more satisfied with their EV experience than last year – and the EV owners who are the most satisfied with their rides can be found behind the wheel of the BMW iX.
Now in its fifth year, the J.D. Power U.S. Electric Vehicle Experience (EVX) Ownership Study focuses on the the first year of vehicle ownership. The overall EVX ownership index is a 1000-point score that measures EV owner satisfaction in both premium and mass market segments across 10 factors. Those being (in alphabetical order):
The reason BMW is consistently pulling ahead? It seems to come down to education. “First-time EV buyers are receiving minimal education or training,” explains Brent Gruber, executive director of the EV practice at J.D. Power. “Dealer and manufacturer representatives play the crucial role of front-line educators, but when it comes to EVs, the specific education needed to shorten the learning curve just isn’t happening often enough. The shortfall in buyer education is something we’re seeing with all brands.”
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For their part, BMW and MINI do a great job with consumer education – and the company’s Genius program (cunning cribbed from Apple’s Genius Bar playbook) is the best in the car business. With that in mind, it’s hard to imagine this going down any other way.
Bigger trends in the EV space
BMW Genius in-person session; via BMW.
After a decline in BEV owners’ overall satisfaction results in 2024, J.D. Power reports that owners of both premium and mass market battery electric EVs are expressing a change of sentiment this year. Part of that is better education, another part is more mainstream awareness of EV charging basics, but most of that is the overall growth and improvement of America’s publicly accessible DC fast charging network.
Among mass market BEV owners, satisfaction is up 86 points year over year (396) as infrastructure buildout continues and brands benefit from the opening of the Tesla Supercharger network. Satisfaction with public charger availability is highest among owners of premium BEVs (551).
Another big EV trend covered in J.D. Power’s survey is the market’s permanence. EVs have staying power, in other words, with the vast, sweeping majority of first-time EV buyers indicating that they’re not going back to ICE.
verall, 94% of BEV owners are likely to consider purchasing another BEV for their next vehicle, a rate that is also matched by first-time buyers. Manufacturers should take note of the strong consumer commitment to EVs as the high rate of repurchase intent offers the ability to generate brand loyal customers if the experience is a positive one. In fact, during the past several years, the BEV repurchase intent percentage has fluctuated very little, ranging between 94-97%. This year’s study also finds that only 12% of BEV owners are likely to consider replacing their EV with an internal combustion engine (ICE)-powered vehicle during their next purchase.
“With five years of conducting this study and surveying thousands of EV owners, it’s apparent that once consumers enter the EV fold, they’re highly likely to remain committed to the technology,” Gruber adds.
Dutch charge point operators Fastned have opened their first DC fast-charging station with up to 400 kW chargers in Italy, marking the eighth nation the company has built stations in.
Fastned’s new EV charging location was built into the existing Truck Park Brescia Est service plaxa on the busy A4 motorway roughly between Milan and Venice. The A4 is a major traffic artery in the northern part of Italy, but that’s not the only reason the site was chosen.
Fastned says that the majority of electric vehicles registered in the boot-shaped nation are located in the northernmost regions of the country of the country. More specifically, the new charging facility is located roughly halfway between Bergamo and Verona, while the A4 continues west to Lake Lugano and Lake Como or and east to Lago di Garda.
The new Fastned charge park was originally set to open in 2024, but wasn’t officially commissioned by the Italian motorway operator A4 Holding Group until this week.
Electrek’s Take
You might be asking yourself why I’m writing about a new charging station in Europe when I usually write about big trucks and tractors. The answer is simple: I read “Truck Park Brescia Est” and assumed this was a truck stop. By the time I figured it out I’d already written about three quarters of the article, and rather than throw it away I decided to use it as yet another opportunity to point out that Tesla is a step or three behind the latest charging tech from China.
I also re-posted an episode of Quick Charge on this same topic (above). Enjoy!