CEO Elon Musk outlined Tesla Inc’s plans to cut electric vehicle battery design and manufacturing costs so radically that a $25,000 car that drives itself will be possible, but the automaker’s shares slipped as Musk forecast the change could take three years.
Musk acknowledged that Tesla does not have its ambitious new vehicle and battery designs and manufacturing processes fully complete. Tesla has frequently missed production targets.
Tesla expects to eventually be able to build as many as 20 million electric vehicles a year. This year, the entire auto industry expects to deliver 80 million cars globally.
Tesla shares, which closed Tuesday down 5.6 per cent, fell another 5 per cent in after-hours trade wiping out about $20 billion in market value in two hours.
