Entry-level Tesla "Redwood" (Model 2?) production starts mid-2025 [report 1/24/24]

[Jabman]

I sincerely hope they choose "Model 2" as the name. It just fits.

So the collection of vehicles becomes
“Cybertruck 2 S3XY” or
“2 S3XY Cybertruck”

It works!

 

[PerfectFlaw]

Lol

Let's not forget.

Six years ago, Elon scammed many people out of deposits and full cash payments of Tesla Roadsters, and nothing has been updated since.

Unbelievable how there hasn't been a lawsuit against Tesla for this.

 

[KuMX]

Here's what Elon Musk had to say on today's Q4 2023 earnings call about the next-gen Tesla low cost vehicle:

"We're very far along on our next-gen low cost vehicle; We're really excited about this. This is a revolutionary manufacturing system. Far more advanced than any other in the world." He also said it will be built in three different factories (Texas, Mexico and one other to be decided later this year).

 

[PerfectFlaw]

What benefit does a cheaper Tesla have for the company?

Reduced profit margins, very little profit and payoff.

Cannibalisation of the Model Y and 3, as buyers of those that stretched themselves to purchase a Tesla to save on gas now can pay even less for an entry level car.

Deminished brand image, a lower entry price for a brand is never a good thing. This is why Porsche does not sell cheap cars. A $30K Porsche would diminish the brand exclusivity and desirability which directly affects the upper range of the models offered.

 

[rudedawg78]

What benefit does a cheaper Tesla have for the company?

Reduced profit margins, very little profit and payoff.

Cannibalisation of the Model Y and 3, as buyers of those that stretched themselves to purchase a Tesla to save on gas now can pay even less for an entry level car.

Deminished brand image, a lower entry price for a brand is never a good thing. This is why Porsche does not sell cheap cars. A $30K Porsche would diminish the brand exclusivity and desirability which directly affects the upper range of the models offered.

Tesla's Mission Statement: "Our mission is to accelerate the world’s transition to sustainable energy. In pursuit of this goal, we build products that are designed to replace some of the planet’s biggest polluters – while trying to do the right thing along the way."

They accelerate by making more affordable options.

 

[Jabman]

What benefit does a cheaper Tesla have for the company?

Reduced profit margins, very little profit and payoff.

Cannibalisation of the Model Y and 3, as buyers of those that stretched themselves to purchase a Tesla to save on gas now can pay even less for an entry level car.

Deminished brand image, a lower entry price for a brand is never a good thing. This is why Porsche does not sell cheap cars. A $30K Porsche would diminish the brand exclusivity and desirability which directly affects the upper range of the models offered.

I agree on the diminishing brand image, but Porsche purists admonish the brand to this day for building the Cayenne and then the Macan. Those purists said/say the same thing. It diminishes the brand image. From Porsche’s perspective, having a model that sells in great quantities helps their bottom line, provides cash flow, increases their viability as a company, and helps fund the iconic 911 into the future. Porsche has said as much, but of course I am paraphrasing.

 

[PerfectFlaw]

Tesla's Mission Statement: "Our mission is to accelerate the world’s transition to sustainable energy. In pursuit of this goal, we build products that are designed to replace some of the planet’s biggest polluters – while trying to do the right thing along the way."

They accelerate by making more affordable options.

As a company trying to profit and keep their stock price inflated, a race to the bottom by lowering profit margins and barriers of entries sounds like a bad strategy.

 

[Jabman]

As a company trying to profit and keep their stock price inflated, a race to the bottom by lowering profit margins and barriers of entries sounds like a bad strategy.

You’re forgetting about an important quantitative factor: volume. It’s economy of scale.

 

[PerfectFlaw]

You’re forgetting about an important quantitative factor: volume. It’s economy of scale.

These are cars we are dealing with though, especially if that volume directly affects the volume of the products being sold from the same company at high profit margins.

As volume of the lower margin vehicle accelerates, the volume of the higher margin vehicles decelerates.

 

[Jabman]

These are cars we are dealing with though, especially if that volume directly affects the volume of the products being sold from the same company at high profit margins.

As volume of the lower margin vehicle accelerates, the volume of the higher margin vehicles decelerates.

To some extent, yes. But I don’t think it is dramatic enough to offset the benefits of volume production. I’m not an expert on manufacturing processes though. I would imagine a billion dollar company like Tesla would have analyze the cost/benefit of producing cheaper products

 

[PerfectFlaw]

To some extent, yes. But I don’t think it is dramatic enough to offset the benefits of volume production. I’m not an expert on manufacturing processes though. I would imagine a billion dollar company like Tesla would have analyze the cost/benefit of producing cheaper products

You'd think they'd analyze a lot of things, but recently they haven't done a very good job at that and the stock price has suffered because of it. Down almost 11% on the day as I type this.

 

[Crissa]

What benefit does a cheaper Tesla have for the company?

Reduced profit margins, very little profit and payoff.

Cannibalisation of the Model Y and 3, as buyers of those that stretched themselves to purchase a Tesla to save on gas now can pay even less for an entry level car.

Deminished brand image, a lower entry price for a brand is never a good thing. This is why Porsche does not sell cheap cars. A $30K Porsche would diminish the brand exclusivity and desirability which directly affects the upper range of the models offered.

You do know that most car buyers can't afford the median-new-car price, right?

Profit isn't the end goal. Transitioning the world to safer, renewably sourced vehicles is.

-Crissa

 

[Carlfluk]

I’ll bet you 2032

 

[flowerlandfilms]

I'm intrigued by the name, "Redwood".
They are obviously quite familiar with JB Straubel's battery materials company, Redwood Materials. And they still have an amicable relationship with JB.
It would seem an odd coincidence that they'd use that codename if they weren't in some way connected. Is RM supplying a new cathode for their "Model 2" batteries? (RM is located ~25 miles from the Nevada gigafactory, and they just announced that they are building a cathode facility that will supply 1 million EVs per year). ?

I think this confluence can be explained away as a simple lack of imagination from both Tesla and Straubel.

 

[jerhenderson]

I sincerely hope they choose "Model 2" as the name. It just fits.

Yes..... then the line-up is 2 S3XY.