Tesla CEO Elon Musk said during a shareholders meeting that "in about three years" the company will be able to launch a low-cost electric vehicle for $25,000, CNBC reports.
The manufacturing costs of electric vehicles will be reduced thanks to new battery designs and other developments that Tesla has unveiled at the meeting.
Tesla's current cheapest car, the Model 3, has a starting price of $37,900.
Tesla's batteries, which contain "thousands of cells," are the most expensive part of these vehicles. Musk has just introduced a new cylindrical battery dubbed 4680 because of its size: the first two numbers refer to its width and the last two to its height.
With its new cells, Tesla is also trying to reduce or completely avoid the use of some expensive materials that are currently used in the manufacture of lithium-ion batteries, including cobalt.
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