Elon Musk Says Tesla's Next-Gen Smaller Car Likely To Be Autonomous
Tesla Inc.’s (NASDAQ:TSLA) next-generation budget car will have a key difference from the rest of its lineup.
What Happened: Tesla CEO Elon Musk said on Tuesday the company’s next-generation smaller car will work mostly in autonomous mode, Reuters reported.
There is a clear path to delivering a car that cost half as much to build as Tesla’s Model 3 sedan, said Musk.
However, Musk did not offer any additional details on timing and models, as per Reuters.
See Also: Best EV Penny Stocks Right Now
Why Is It Important: The low-end car, which some refer to as Model 2, will likely be 15% shorter and 30% lighter, with a 25% smaller-sized battery, relative to the Model 3, according to an analyst who predicted that it would catapult Tesla’s revenue to $400 billion by 2040.
Tesla is said to be delivering vehicles with Hardware 4 (HW4) self-driving hardware upgrades without any fanfare.
Last month, Tesla voluntarily recalled 362,758 vehicles, saying the Full Self-Driving Beta software may cause crashes.
However, Tesla is not the only one facing trouble with autonomous vehicles. Earlier this week, General Motors (NYSE:GM) robotaxi unit Cruise‘s COO Gil West said that the company is eyeing cost cuts this year.
Price Action: Shares in Tesla fell 3.15% to $187.71 on Tuesday and gained nearly 0.2% after hours, according to data from Benzinga Pro.