Tesla (TSLA) aims to reduce cost of next generation vehicle by 50% with manufacturing efficiencies

In the future, Tesla's vehicles will allow for a 50 percent reduction in cost thanks to improvements in manufacturing efficiency.


Tesla (TSLA) shared all sorts of information during its Tesla Investor Day 2023 event, including ways in which it aims to reduce the cost of its next generation of vehicles by as much as 50 percent. The company shared several slides that demonstrate how its next-gen vehicle will allow for a 40 percent reduction in manufacturing footprint in the factory, and a 50 percent reduction in cost.

As shown on one graph, the Cost of Goods Sold per car highlights a 50 percent reduction in cost for Tesla’s next generation of vehicles compared to its current Model 3 and Model Y.

Slide outlining Tesla's Next Generation Vehicle Manufacturing Efficiencies which sees cost reduced by 50 percent
© Tesla

Tesla touched briefly on its current vehicle assembly process as well which is more linear in nature from stamp, to body, to paint, to final assembly. Following this, it shows an updated “Parallel & Serial Assembly” method which sees Stamp & Paint and Casting taking place at the same time. This seemingly allows for quicker, more efficient assembly.

Slide on Parallel and Serial Assembly process which sees Stamp & Paint and Casting taking place at the same time
© Tesla

Elsewhere, Tesla notes that future vehicles will be even more scalable with a 75 percent reduction in Silicon Carbide and a reduction in all-in cost by $1,000. For more on Tesla’s Investor Day 2023 event, be sure to read through some of our other coverage including Elon Musk saying there is a clear path to a fully sustainable Earth, and Tesla claiming that EVs hit 10 percent market share in 2022.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

From The Chatty
Hello, Meet Lola