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Tesla plans to go smaller and more affordable for its next generation of electric vehicles, CEO Elon Musk has revealed.

Speaking during a conference call on Tuesday following the release of Tesla’s third-quarter financial results, Musk said the company was working on a next-generation platform designed for vehicles smaller than the current Model 3 and Model Y crossover.

He also said the platform would cost half what the platform of the Model 3 and Model Y costs, which points to any vehicle based on it also being more affordable than the Model 3 and Model Y.

“At this point, we are done with the engineering for Cybertrucks and for Semi,” he said. “So, it’s obviously what we’re working on, the next-generation vehicle, which will be probably be about half the cost of the 3 and Y platform. It will be smaller, to be clear.”

2022 Tesla Model 32022 Tesla Model 3

Musk also predicted that production of vehicles on the new platform will exceed the combined production of the rest of Tesla’s lineup.

“But it will, I think, certainly exceed the production of all our other vehicles combined,” he said. “I mean, obviously, we’re going to take everything we learned from S, X, 3, Y, Cybertruck and Semi into that platform.”

Musk didn’t go into detail about how Tesla will cut costs but said the company had a goal to get the “effort” required to build EVs on the next-gen platform to half what is required for the Model 3 and Model Y.

The Model 3 is the most affordable Tesla at present, starting at $48,490. As for the cost for a future EV, Musk in 2020 said Tesla could cut costs via further improvements in the production process coupled with cheaper battery chemistry, which could result in an EV costing as little as $25,000.

Before its launch in 2018, Musk said the Model 3 would start at $35,000. A $35,000 Model 3 was offered in 2019, though Tesla pulled it from sale after only a few months.

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