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00:00We saw the stock price continued to fall after that announcement . But what exactly did we hear about this new twenty five thousand dollar car . So Tesla plans to meet the 25000 dollar car within the next three years. There's no hard deadline. We don't know what it's gonna be called. But Elan did say that it would be fully autonomous which was kind of an interesting bet that he dropped with it. And any it's made possible by all of the innovations that Tester announced around batteries. Right. Things that we knew were coming. The company plans to produce its own battery cells. It's cutting costs through innovations like using DRI electrodes which use less material and less machinery so they're cheaper to make. It's also seeking new output in terms of supply chain. Elan talks about investing in a specific lithium mine for example in the state of Nevada. And so all of this kind of is underpinned by Tesla having a plan to cut in half the cost of producing batteries . And really that's been the limiting factor. You know investors the public have a short memory. It was only back in 2016 that Elan promised us a thirty five thousand dollar Model 3. And yet here we are today in 2020 and we still don't quite have a thirty five thousand dollar ones. The idea of a 25000 dollar Eevee in the next three years might be met with some skepticism. How crucial is Shanghai production . Yes. This was our Shanghai production. They want to ramp up production to an annual capacity of around a million. You think that's Tesla's earnings back in July. They talked about how they really localize the supply chain in China. You know it's a really important market where the adoption is higher than in other markets particularly in Europe for example and in the U.S. And so they've been investing heavily there in Elan spoke with confidence how you'll see pretty quickly in the coming months this ramp up in production in Shanghai with an ultimate goal of 1 million annual capacity .

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Musk Says Tesla Plans $25,000 Electric Car in Next 3 Years

Tesla’s long anticipated Battery Day has seen Elon Musk announce what has been a long-term objective - a $25,000 electric vehicle launched in about 3 years. Bloomberg’s Ed Ludlow reports on “Bloomberg Daybreak: Asia.” (Source: Bloomberg)

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