Tesla continues to push the boundaries of electric vehicle (EV) production by driving down the cost per car. The company’s Chief Financial Officer, Vaibhav Taneja, recently announced that Tesla has successfully reduced its overall cost per vehicle to below $35,000, with material costs playing a significant role in this achievement.
This milestone marks a significant improvement from just three years ago when Tesla’s former Head of Investor Relations, Martin Viecha, revealed that it cost the company $84,000 to produce each car in 2017. Fast forward to 2024, and Tesla has managed to slash that number to around $36,000 per vehicle, a remarkable feat in cost reduction.
Taneja emphasized that lowering Tesla’s cost per vehicle was no easy task. Despite facing increased depreciation and some rising costs associated with the production of the new Model Y, Tesla was able to achieve this milestone. The CFO noted that all Tesla factories are gearing up to start producing the new Model Y next month, a move that involves updating all facilities simultaneously to accommodate this popular vehicle.
The Tesla team remains confident in their ability to ramp up production quickly, but Taneja acknowledged that this endeavor is unprecedented. He highlighted the unique challenge of updating all factories to produce the best-selling car on the planet simultaneously, showcasing Tesla’s commitment to innovation and efficiency in the EV market.
As Tesla continues to drive down the cost per EV and improve its production processes, the company remains at the forefront of the electric vehicle industry. With a focus on innovation, sustainability, and cost-efficiency, Tesla is setting new benchmarks for the future of transportation.
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