Each Tesla EV now costs 2.33 times cheaper to produce than five years ago, Head of Investor Relations Martin Viecha revealed at a recent Goldman Sachs conference.
Back in 2017, every example made cost the company $86,000 on average, but the costs have since fallen to just $36,000. Viecha pointed out that simplification of assembly processes yielded the most savings.
As of right now, Tesla has active production site in Fremont, Berlin and Shanghai. As the manufacturing volumes keep growing, the costs are expected to go further down.
According to Martin Viecha, the company is currently in need of a production car more affordable than the Model 3. Having such an EV in its portfolio would enable Tesla to enter the robotaxi market and gain popularity worldwide. However, as it stands right now, the Model 3 and Model Y are so wildly popular, there is simply no need to produce a cheaper alternative at the moment.