The CEO of the Texas-based automaker claims that the prices of its EVs have reached an embarrassingly high level as a result of the rife inflation. Elon Musk acknowledged the need for price hikes at a briefing to the media and investors this morning, although he called the size of the price rises "embarrassing." Tesla has to boost prices to defend itself against growing inflation and material costs.
Musk consequently anticipates that a decline in inflation at the year's conclusion may open the door for potential price cuts on well-liked electric vehicles like the Tesla Model Y.
Consumers in various marketplaces throughout the world are today facing a serious problem due to an intolerably high inflation rate. The prices of battery-powered electric automobiles like the Tesla Model Y, which may potentially help to transition towards renewable energy, have climbed dramatically as well, despite the fact that the costs of basic necessities like food and energy have skyrocketed in many regions. Following Tesla's unexpectedly positive earnings report for the second quarter of 2022, CEO Elon Musk has now addressed this sad circumstance during a conference call. His remarks are refreshingly open and direct.
In addition to inflation, the EV manufacturer has had to raise all of its pricing due to shortages and problems with the supply chain in particular. Additionally, it is well known that the brand-new Berlin Gigafactory's manufacturing of the Tesla Model Y has temporarily stalled due to a lack of skilled staff. Elon Musk also anticipated that inflation may slow down near the end of the year and expressed optimism that eventually, costs for electric vehicles like the Tesla Model Y might be slightly reduced.
In any case, Musk added that the manufacturer is constantly working to shorten its delivery times and that there is still a lot of demand for Tesla vehicles despite the higher prices.
Giga Texas vs Giga Fremont
People are obviously interested to see how the Austin-made electric crossover compares to its Fremont-made counterpart now that Tesla has started shipping Model Y EVs from its new facility in Texas.
YouTube influencer Gjeebs compared a Texas-made Model Y Standard Range that has a structural battery pack and 4680 cells with a California-made Model Y Long Range that has the regular battery and 2170 cells and his own Model Y that was also manufactured in Fremont.
These Model Ys appear to be similar at first glance, but closer inspection reveals some intriguing variances. According to Gjeebs, the build quality is superior to the Model Y manufactured in California, with outstanding fit and finish, accurate panel gaps, and extremely nice paint. This is probably what most customers want to hear first.
The interior of the Texas-made Model Y is well-designed and has a factory-installed cargo cover, unlike earlier Fremont-built Model Ys that were missing this component entirely. Other new (and improved) features include the Alcantara lining on the door panels, a magnetic cover for the storage compartment in the center console, and premium black seats that are softer than the white ones in earlier Model Ys.
The reviewer mentions while driving the Model Y 4680 how the suspension is well-balanced and offers a comfortable ride, which he partly credits to the 19-inch wheels. However, the acceleration is a little bit slower than in the Model Y Long Range produced in Fremont.
The ability to reduce vehicle weight when combined with the structural battery pack is one of the many benefits offered by the 4680-type cylindrical cells, at least in theory. Tesla does not provide specific figures, but the weight difference between a Model Y with 4680 cells and one with 2170 cells should undoubtedly be substantial. Well, in reality, it doesn't seem to be the case.
An Austin-built Model Y with 4680 cells and a structural pack made by a Model Y with 2170 cells were put side by side by Ryan Levenson of The Kilowatts. After numerous viewers enquired about the weight differential in his YouTube video that goes into great depth about the differences between the two vehicles, he weighed both of them.
This showed a small weight difference in favor of the 4680 Model Y of 20 pounds (9 kilograms). The Model Y from Texas weighed 4,480 pounds (2,032 kg), whereas the car from California weighed 4,500 pounds (2,041 kg).