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Tesla's Upcoming Hatchback Is Going to End Gas Cars

Tesla's upcoming hatchback vehicle will end gas cars. It will be smaller than the Model 3, have a smaller battery, be more efficient, and cost less.


Tesla's Upcoming Hatchback Is Going to End Gas Cars

Tesla will most likely produce a vehicle that is a hatchback to handle the vehicle segment that is more closer to a Toyota Corolla. Tesla may be able to make the most efficient, affordable, lowest cost to produce, and profitable EV ever.

Tesla has the manufacturing advantage when it comes to EVs. CATL is a battery manufacturer in China and especially for Tesla's standard range cars, CATL's LFP batteries are used. Tesla will focus on the Cybertruck, the "Model 2", and the Semi next year in 2023.

Tesla has been waiting for CATL to finish their factory in Shanghai, China. When that factory is complete, it should have even better batteries and technology for Tesla. When that is launched, the M3P battery, this will make Tesla's hatchback vehicle possible.

Elon Musk has told Tesla employees that they want to begin producing this smaller car in 2023. Due to recent events in China, like Tesla needing to discount its cars in order to keep selling at large volume (with still high margins), Tesla knows it must make a smaller and cheaper vehicle to tap into the 23 million yearly Chinese car market. Tesla still needs China and the Chinese want more affordable and smaller EVs.

The Model 2

There has been more than enough time for Tesla to start work on this vehicle. Around the end of 2023, Tesla should start making this vehicle. Ramping to volume production will take more time. The current cost for this new vehicle with M3P batteries and using a structural battery pack, should allow Tesla to put a lot less battery in the vehicles.

Structural giga castings will also matter and if Tesla can somehow do a single casting that will further reduce the cost. Tesla needs to get to 30% or greater margins for its vehicles.

Tesla can't just change the batteries. There will be other ways to save costs on this vehicle. There will be a new casting process. There will be a structural component to this battery. This will eliminate many different welding and stamping processes. Many parts will be removed. This will also reduce the time it takes to make this vehicle.

Tesla is also a robotics company and they will need to automate the making of this vehicle as much as possible. Tesla will need smaller battery packs, but still need to have a high range on this vehicle.

CATL's battery factory near Giga Shanghai will start to enable the production of this vehicle. I'm looking forward to this hatchback vehicle being produced from Tesla. It truly will be the end of all other gas cars and all other EVs.

What do you think about a smaller hatchback vehicle being produced from Tesla? Will they produce it at the end of next year?

For more information, see this video from The Electric Viking:

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, The Electric Viking, Screenshot


DeanMcManis (not verified)    November 17, 2022 - 5:32PM

Everyone is eager to claim that gas vehicle's days are numbered. But until sales of EVs pass 50% (they are 6% now), then the claims are wildly premature. It has been two years since Elon Musk mentioned that Tesla was planning on building a $25K EV (with FSD), but after that point Tesla prices only climbed up (with today's base model being $47,000). I was really discouraged recently when Musk said that Tesla was not going to be working on the $25K model at all. But this recent revisiting to the plan of building a more affordable Tesla is very good news. One point often forgotten is that Musk made a point of mentioning that the $25K model would be smaller and less appointed than the Model 3, and might have a lower range. So even though I am happy to hear that Tesla is back on schedule to build a more affordable EV, I will hold my back my expectations for it to disrupt ICE vehicle sales just yet.