Where is Tesla headed? New Street Research estimates that the “Model 2” will be about 37 percent cheaper to produce than the Model 3

(Motorsport-Total.com/Motor1) – Pierre Ferragu, managing partner of New Street Research and Tesla bull, recently put together a Twitter thread with some expectations for Tesla’s forthcoming next-gen vehicle platform and model. We know that Tesla is planning a new platform for smaller vehicles to drive down costs, but little has been reported about it until now.

We recently covered more about Tesla’s upcoming vehicle platform, which the manufacturer says will be smaller than the Model 3 and Model Y platforms and will cost half as much. This could be the ticket to Tesla’s future model for around $25,000, but we can’t say for sure.

The next-gen vehicle will be critical to Tesla’s success, according to Pierre Ferragu, who dubbed the first upcoming model on the new platform “Model 2.” He gave some insights into what to expect.

First of all, the investor says that the new Tesla will be smaller, which we already knew. This also means that it needs a smaller and lighter battery pack.

We also already knew that the new Tesla platform would save costs. Musk has shared in the past:

“The next generation vehicle will be about half the cost of the 3/Y platform and it will be smaller. It will, I think, certainly exceed the production of all other vehicles combined.”

However, Ferragu estimates that the Model 2 will be about 37 percent cheaper to produce than the Model 3.

With the smaller platform, smaller models, and smaller batteries, Tesla will be able to produce more cars with the same amount of materials and labor. Depending on how things play out, there’s a chance the U.S. electric-car maker could make two cars in the future with the same amount of materials, time, and cost as it does a single Tesla model today.

While the next-gen Tesla platform and models cost more to buy than comparable-sized gasoline cars, they offer a lot more technology and features. Ferragu concludes the topic as follows:

Do you think Tesla can achieve 30% gross margin? Will Tesla Ever Sell an Electric Car for $25,000? Is the Projected 12 Million Tesla Vehicle Sales in 2030 a Fair Estimate? Let us know what you think of Ferragu’s analysis.