Elon Musk says Tesla's next-gen vehicle will be cheap and extremely popular

Elon Musk has revealed some new details about Tesla's upcoming vehicles, with the Tesla CEO saying that a new affordable vehicle is on the horizon.

Timestamp: 37:14

During Tesla's Q3 2022 earnings call on Wednesday, which can be listened to above, Musk discussed that the primary focus of Tesla's vehicle development team is a new electric vehicle that is slated to be more compact than the current Model 3 and come in at a much more affordable price, roughly half the cost of the Model 3 and the Model Y. Furthermore, Musk said Tesla's new next-generation vehicle platform would be much smaller than the Model 3/Y, but he thinks it will exceed the production of all other vehicles combined.

Notably, Musk made a point of not mentioning any release dates or even a name for the vehicle but emphasized that it's a main focal point for the Tesla vehicle development team. This isn't the first time Musk has mentioned a Tesla vehicle with a price tag of approximately $25,000, as the Tesla CEO said back in 2020 at Tesla's "Battery Day" that a vehicle with such a price tag would roll out three years from now (2023).

"We're confident that long term, we can design and manufacture a compelling $25,000 electric vehicle. This has always been our dream, from the beginning of the company. I even wrote a blog piece about it, because our first car was an expensive sports car, then a slightly less expensive sedan, and then finally, sort of a mass-market [model] like the Model 3 and Model Y," said Musk at Tesla's Battery Day in 2020.

"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," said Musk during Tesla's Q3 2022 earnings call.