Tesla Inc. CEO Elon Musk seemed to kill off plans to build a $25,000 car for the masses earlier this year with comments that such a vehicle was no longer in the works — only to revive speculation this month that it's still on the way.
The tech billionaire said during the company's Oct. 19 earnings call that Tesla is actively working on a third vehicle platform that would cost Tesla about half as much to build as the platform underpinning its current volume vehicles, the Model 3 sedan and Model Y crossover. The base Model 3 starts at $48,440 with shipping.
"We don't know the exact dates, but this is the primary focus of our new vehicle development team," Musk said. The new vehicle eventually will exceed the volume of all other Tesla vehicles combined, he added.
Some analysts and Tesla observers are interpreting that to mean the company is reviving the $25,000 model that Musk had strongly promoted at an event in September 2020. Musk predicted then that the vehicle would take about three years to build.