Tesla Plans to Unveil Cheaper Model Y

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00:00You and I worked on this together. This is what I'm hearing from sources inside Tesla,

00:04that it is just a more affordable Model Y. Fewer features, they engineered cost out of the battery

00:10pack and the motor, but also it's kind of been hiding in plain sight because Musk and others

00:16discussed this on the most recent earnings call. Yeah, one of the more colorful moments on that

00:22call was, you know, some of the other executives at the company kind of dancing around these

00:26questions about what this more affordable Tesla would be and Musk just coming right out and saying,

00:32let's let the cat out of the bag. It's just a Model Y. So, you know, I think the expectation here,

00:37of course, is that this by taking some of the content out of the vehicle, maybe, you know,

00:43making it a little bit less attractive from a range perspective, but more attractive from a price

00:49perspective. You know, the hope here is that some incremental consumers who maybe were going to be

00:55priced out of this vehicle now can maybe afford it with this $7,500 tax credit going away, and I think

01:02that's going to be, you know, one of the key questions for the next earnings call from Tesla is, you know,

01:07just how steep of a cliff are we looking at here now that that incentive has been sort of pulled out from

01:13under the industry. I can see that that reacts to the unwinding of the tax credit, but there's been this

01:19ongoing call for them to offer a less costly version of the EV, largely because of China competition.

01:26Is it enough? I think, you know, that's a really fair question, and Ed's reported on this going back

01:32quite a while that, you know, Elon Musk is not particularly interested in expanding the lineup with an

01:39altogether new vehicle when, in his mind, this is a company that's on the cusp of making vehicles capable of driving

01:47themselves. And so, you know, why sort of, you know, bother with with introducing a more affordable vehicle

01:54and competing with the likes of a Corolla or a Civic when, you know, what you have in the lineup is on the cusp

02:01of doing something that, you know, no other manufacturer is going to be capable of doing. The question, of course,

02:06is can he make good on that sort of, you know, promise or vision?