Tesla already noted that its upcoming next-gen EV platform will allow it to reduce costs, but there have been few details and no official timeline. Based on several pieces of information shared during the US EV maker's recent Investor Day, Tesla bull investment firm Ark Invest is predicting that the company will be able to reduce vehicle costs by around 50 percent over the next five years.
It seems Tesla already has some of the best vehicle margins in the industry, which has allowed it to cut prices on its cars significantly. As Tesla upgrades current factories and builds more, economies of scale help it reduce costs. Add the fact that the automaker continues to take on more in-house responsibilities, its battery-related efforts, and the confirmation of a new platform soon, and there's a recipe for spectacular margins.
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