Tesla said today that it remains on track to produce and launch “more affordable models” in the first half of next year, but it shared no new details on when we might expect to hear more.
For several years now, Tesla has been teasing everyone with the promise of more affordable models.
While the Tesla Model 3 is pretty reasonably priced, many have been waiting for a promised $25,000 model, which many had taken to calling the “Model 2.”
Tesla was supposedly going to pursue a new revolutionary “unboxed” manufacturing method to get costs down for the future vehicle, to enable this lower price.
But even after that, Tesla has continued to state that it is pursuing “more affordable models,” with little additional detail available.
In today’s earnings report, Tesla reiterated guidance stating that it still plans a more affordable model in the coming months, but that it won’t be nearly as revolutionary as originally planned.
Here’s the passage:
Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up.
This approach will result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times. This should help us fully utilize our current expected maximum capacity of close to three million vehicles, enabling more than 50% growth over 2023 production before investing in new manufacturing lines.
Our purpose-built Robotaxi product will continue to pursue a revolutionary “unboxed” manufacturing strategy.
Elsewhere in the report, Tesla states that its “Next Gen Platform” is still “In development,” for production in various regions around the world. Tesla currently operates vehicle manufacturing facilities in California, Texas, Shanghai and Berlin.
Electrek’s Take
If Tesla’s timeline is to be believed, this new model is coming in less than 8 months. While it’s not impossible that a company can develop a model in secret and get it on the road within 8 months of the public learning about it, we have never seen a new Tesla model go from introduction to production anywhere near that quickly.
That refresh likely wouldn’t make it into the market until early next year, especially in North America, if production is starting in Shanghai first.
It’s almost enough to make us wonder – is this the “more affordable” model that Tesla has been talking about all this time? Just a refreshed Model Y, perhaps with process improvements that will enable Tesla to push the price down some?
If so, that would be quite disappointing. A refresh isn’t really a new model, and it’s unlikely to break any new ground in terms of becoming the lowest-priced Tesla ever (since we can’t imagine they’d price the Model Y lower than the Model 3).
And if they’re not talking about the refresh, and indeed are talking about an actual new model – that just adds another product to Tesla’s mind-numbingly-crowded “next year,” where Musk has stated that the company will change the world in 6 – count ’em, six – ways.
We certainly hope a new cheaper model is coming, especially as Tesla’s offerings (minus the polarizing Cybertruck) have become a little bit stale. It could help drive more EV adoption by reaching a new lower price point, could change perceptions of Tesla as a luxury-only vehicle brand, and could even bring in new customers for Model 3/Y who had previously been turned off by that perception of Teslas as being “too expensive” (despite, e.g., quite attractive lease deals).
And in particular, it remains disappointing that Musk has chosen to focus on a pie-in-the-sky Robotaxi (which will not be available “next year,” for the tenth-or-so year he’s said it will be), and various AI-buzzword nonsense, than what consumers keep asking for – a cheaper EV model. Reiteration that Tesla is working on one is good, but we’ll remain unconvinced until Tesla shares more details.
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However, Tesla has since removed Nissan from its list of automakers with access and switched the Japanese automaker back to the “coming soon” list.
Nissan confirmed to Electrek that access is not currently available, but it will be available by the end of the year.
It sounds like a miscommunication on Tesla’s side. We hear that it should be coming soon.
Elon Musk fired Tesla’s entire charging team – seemingly to make an example of its then-head of charging, Rebecca Tinucci, who reportedly disagreed with Musk about making further layoffs following another layoff wave.
Instead of just firing her, Musk decided to fire the entire team and then sent an email to other Tesla managers using the charging team situation as a warning.
Tesla has since had to rehire several former members of its charging team to rebuild the department.
This is believed to have slowed down the opening of the Supercharger network to other automakers in North America. We were told that communications with Tesla’s charging team were difficult to non-existent for those automakers for weeks earlier this year.
Europe’s “green dream” Northvolt has filed for bankruptcy protection in the US after a rescue package failed to go through, leaving the battery maker with just one week’s worth of cash in the account. Cofounder and CEO Peter Carlsson, who spearheaded a costly expansion, has also quit.
The Swedish-owned battery maker filed for Chapter 11 in the Southern District of Texas, reports Bloomberg, with $5.8 billion debt. CEO Peter Carlsson, Telsa’s former chief products officer, stepped down from his role as CEO after the filing, but will remain onboard as advisor and director.
According to a statement, Northvolt said that its main factory will maintain business as usual during the reorganization, as the company now has a buffer from creditors, giving it time to restructure the balance sheet. However, the company said that this will not impact its business in Germany, and through the court process, Northvolt now has access to about $145 million in cash collateral. An additional $100 million in debtor-in-possession financing will be added to the pot via one of its customers, the report said.
The company still has a $7 billion project in place in Quebec – a new campus that is set to include a cell production plant, battery recycling, and cathode active-material production facilities – and the bankruptcy won’t affect those plans, the company said on its website. “Northvolt Germany and Northvolt North America, subsidiaries of Northvolt AB with projects in Germany and Canada, are financed separately and will continue to operate as usual outside of the Chapter 11 process as key parts of Northvolt’s strategic positioning.”
The plant is expected to have capacity to produce 30 GWh of battery cell every year, with an expansion set to double that output, making it enough to power 1 million EVs. The Canadian government is putting $1.334 billion CND toward the project, with Quebec chipping in another $1.37 billion CND.
Northvolt has hit hard times in recent months, once thought of as Europe’s best shot to homegrown EVs and the makers of “the world’s greenest battery.” Enthusiasm mounted as the company opened the doors to its first plant in Sweden, in the small town of Skelleftea near the Arctic Circle, in 2021. Billions of dollars have been invested into the company, and Volvo, VW, and BMW rushed to place future orders.
All of this enthusiasm has been fueled by a vision to cut dependency on China by creating greener EV batteries using 100 percent recycled nickel, manganese, and cobalt. Plans were put in place to build factories in Gothenburg, in southern Sweden, and Poland, Germany, and Canada, all backed by huge government subsidies. Back in January, the company raised an additional $5 billion, firmly locking in its position as one of Europe’s best-funded startups and recipient of the largest-ever green loan in the EU.
But then things started going south, with Northvolt’s production problems and massive delays forcing BMW to cancel its €2 billion battery cell order with the company. This past May, Northvolt also announced that it pushing back its plans for an IPO until next year. The interim report that followed revealed the dire state of its finances and how far its production had fallen short of goals, with Carlsson admitting he had been “too aggressive” with the company’s expansion plan.
Since Northvolt has put in place a series of changes to reset the company’s course, including bringing onboard a new CFO, leaving the former CFO to focus solely on expansion plans. Plus the company started making cuts, including closing down its research center, Cuberg, in San Francisco and deprioritizing secondary businesses. At the end of September, Northvolt announced that it would cut 1,600 staff from three Swedish sites and about 20 percent of its international workforce.
Last month, Volvo started proceedings to take over their joint venture with Northvolt, while Volkswagen Group’s representative to Northvolt’s board stepped down this month. Sweden, for its part, is ruling out taking a stake to save its homegrown enterprise, Bloomberg reports. Carlsson had said last month that the company needs more than $900 million to permanently shore up its finances.
Photo credit: Northvolt
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Leading yard operation 3PL YMX Logistics has announced plans to deploy fully twenty (20) of Orange EV’s fully electric Class 8 terminal trucks at a number of distribution and manufacturing sites across North America.
As the shipping and logistics industries increasingly move to embrace electrification, yard operations have proven to be an almost ideal use case for EVs, enabling companies like Orange EV, which specialize in yard hostlers or terminal tractors, to drive real, impactful change. To that end, companies like YMX are partnering with Orange EV.
“This relationship between YMX and Orange EV is a significant step forward in transforming yard operations across North America,” said Matt Yearling, CEO of YMX Logistics. “Besides the initial benefits of reduction in emissions and carbon footprint, our customers are also seeing improvements in the overall operational efficiency and seeking to expand. Our team members have also been sharing positive feedback about their new equipment and highlighting the positive impact on their health and day-to-day activities.”
This Orange looks good in blue
One of the most interesting aspects of this story – beyond the Orange EV HUSK-e XP’s almost unbelievable 180,000 lb. GCWR spec. – is that this isn’t a story about California’s ports, which mandate EVs. Instead, YMX is truly deploying these trucks throughout the country, with at least four currently in Chicago (and more on the way).
“Our collaboration with YMX Logistics represents a powerful stride in delivering sustainable yard solutions at scale for enterprise customers,” explains Wayne Mathisen, CEO of Orange EV. “With rising demand for electric yard trucks, our joint efforts ensure that more companies can access the environmental, financial, and operational benefits of electrification … this is a win for the planet, the workforce, and the bottom line of these organizations.”
We interviewed Orange EV founder Kurt Neutgens on The Heavy Equipment Podcast a few months back, but if you’re not familiar with these purpose-built trucks, it’s worth a listen.