Tesla’s Investor Day provided a glimpse into the future of electric vehicles and how they will revolutionize the automotive industry. During the presentation, Tesla showed how the Model 3 already has a 5-year total cost of ownership that is lower than the world’s best-selling car, the Toyota Corolla. The base Model 3 sells in the US for $US43,000 ($US35,500 including the IRA tax credit) while the Toyota Corolla starts at $US21,550. While the upfront cost of the Model 3 is 50% higher than the Corolla, the bulk of the savings come from significantly lower running costs due to electricity being much cheaper than petrol/gas and minimal maintenance costs associated with electric vehicles.
Tesla then outlined its plans to dramatically cut production costs and ramp up volume using a third generation vehicle platform. This would put cost of production per vehicle at less than $US20,000, resulting in a 5-year total cost of ownership over 30 per cent less than the Toyota Corolla. This would mean that the next generation vehicle would sell for around $US25,000, putting it in the same price category as the Corolla.
Toyota executives have taken notice of Tesla’s advancements in manufacturing and have said that the Model Y is “truly a work of art” and “It’s a whole different manufacturing philosophy”. It is clear that Toyota needs to act quickly if it wants to remain competitive in the electric vehicle market. If it fails to do so, the Toyota Corolla could go from being the top selling car to a relic in a museum.
FAQ
Q1: Are electric car batteries recyclable?
A1: Yes, electric car batteries are recyclable.
Q2: Are electric car chargers free?
A2: It depends on the charger and the location. Some electric car chargers are free, while others may require a fee.
Q3: Can electric car batteries be rebuilt?
A3: Yes, electric car batteries can be rebuilt with the right tools and knowledge.
