Hey everybody, welcome back to the Elon Musk Podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla X, The Boring Company, and Neurolink. I'm your host, Will Walden. What does Tesla's rumoured Model Q mean for the electric vehicle market? And could this sub $30,000 model redefine affordability for EV buyers? And how does the potential launch of a China specific 3 role model Y factor into Tesla's
strategy? Now, these questions take center stage as Tesla's latest investor meeting reveals significant updates about his product road map. Now, Tesla is reportedly gearing up to launch a new affordable vehicle, tentatively referred to as the Model Q, in the first half of 2025. Now Deutsche Bank analyst following a recent meeting with Tesla's head of investor relations Travis Axelrod disclosed the vehicle's projected price less than $30,000.
When including subsidies without USEV tax credits, the price could rise to $37,499. Analyst Edison Yu characterized this move as part of Tesla's strategy to expand its total addressable market, or the T AM, with the Model Q joining a lineup potentially augmented by other innovations such as a longer wheelbase Model Y variant for China. Now, the announcement aligns with Tesla's long term goals of broadening its appeal by diversifying its lineup and targeting underserved market segments.
The Model Q would be smaller and lighter than the current Model 3 by approximately 15% and 30%, respectively. Analysts speculate it will serve as an entry level model with streamlined features to keep costs down while maintaining Tesla's reputation for cutting edge technology.
Now, in addition to the Model Q, Tesla appears poised to target the Chinese market with a new variation of its Model Y Rumors suggest this vehicle will feature a three row configuration and a longer wheelbase, aiming to appeal to families and compete with domestic automakers like BYD. While Tesla China has declined to confirm specifics, the move could address growing competition in a market where affordability and versatility Dr. consumer preferences.
Now. This potential Model Y variant reflects Tesla strategy of tailoring its offerings to regional needs. By focusing on China, a crucial EV market, Tesla could enhance its competitiveness while reinforcing its global growth objectives. Now, according to Deutsche Bank, this diversification in product design could be instrumental in boosting Tesla's production and delivery numbers in the coming years.
Now, the revelations from the investor meeting have already influenced financial projections. Deutsche Bank raised Tesla's stock price target from 295 to 370, setting optimism about the Model Q and other forthcoming products. Now, Bank of America also adjusted its outlook after a recent visit to Tesla's Giga Austin factory, reiterating confidence that a sub $30,000 EV could significantly expand Tesla's Tam.
Investors appear encouraged by Tesla's continued innovation despite concerns about fluctuating demand and potential economic headwinds. And Tesla's stock climbed 3% during midday trading following the news, extending its recent winning streak to five days. Now, analysts predict that a more affordable vehicle could attract a new demographic buyers, further solidifying Tesla's dominance in the EV sector. Now, while Tesla's product announcements have generated excitement, challenges still
remain. Goldman Sachs recently revised its quarter four delivery estimates downward, setting potential hurdles in achieving year over year growth in 2024. Now, concerns about demand have also been amplified by reports of temporary worker furloughs a Tesla's cyber truck production line. Now, despite these issues, Tesla
remains a confident outlook. During the investor meeting, the company projected value growth of 25% to 30% for next year, emphasizing its ability to maximize production capacity at existing factories. Such growth could hinge on the successful rollout of the Model Q and other new vehicles, which aimed to attract a broader customer base without
compromising profitability. Now, Tesla's ambitions extend beyond traditional EVs, though the company is making strides in autonomous driving technology, which is a topic that dominated much of the investor meeting discussion. Tesla's Full Self Driving software is undergoing significant updates, with version 13 reportedly demonstrating A3 to 5X performance improvement compared
to its predecessor. Analysts expect this iteration to reduce human interventions to just over one per 10,000 miles. Tesla's Robotaxi initiative is also a focal point. The company plans to launch testing in California and Texas next year, using teleoperators for added safety. During the initial phase, this fleet will consist of company owned vehicles, reflecting Tesla's cautious approach to scaling autonomous services. Now, regulatory hurdles are a
thing. One potential barrier to Tesla's autonomous ambitions is the regulatory environment. However, you noted that Tesla anticipates changes under the incoming US administration, which could streamline federal guidelines for self driving technology through the National Hwy. Traffic Safety Administration or the NHTSA. As such, regulatory shifts could pave the way for faster deployment of robotaxi services both domestically and internationally.
The company's optimism contrasts with its history of setting ambitious goals that have sometimes fallen short. Yet analysts believe Tesla's current plans, backed by advancements in FSD technology and anticipated regulatory support, stand a strong chance of fruition now.
The Model Q's projected affordability signals Tesla's intent to dominate the budget friendly sector of the EV market, Competing directly with models like the BYD Dolphin and Volkswagen ID 3. This vehicle could redefine customer expectations for cost effective electric mobility. And by leveraging economics of scale and simplifying features, Tesla aims to make EV ownership accessible to a much broader
audience. At the same time, Tesla's exploration of specialized models like the Three Row Model Y for China shows that they're building for certain environments. The adaptability may prove crucial as the global EV market becomes increasingly competitive. Hey, thank you so much for listening today. I really do appreciate your
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