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Tesla’s Cost-Cutting Strategy for Affordable Models Raises Questions

Tesla’s Cost-Cutting Strategy for Affordable Models Raises Questions

Author:

Global Cryptocurrency

Published:

2025-10-18 23:09:02

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BTCCSquare news:

Tesla's recent move to slash costs by removing features from its Model 3 and Model Y has sparked debate. The company estimates savings of roughly $5,000 per vehicle, achieved through measures like reducing battery capacity by 10%, smaller wheels, and passive shock absorbers. Elon Musk's 2023 quote—"Any fool can reduce the cost of a car by making it worse and just deleting functionality"—now rings ironic as Tesla pursues this strategy.

The value proposition of these trimmed-down models remains unclear. While some cuts seem logical, others risk diluting Tesla's luxury brand appeal. The automotive market will soon reveal whether this gamble pays off or backfires.

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