Is Tesla's New Lower-Priced SUV a Good Car for Gen Z?
A cheaper, smaller Tesla SUV could be hitting the electric vehicle (EV) market relatively soon, but whether it will be a smart buy for Gen Z drivers remains to be seen.
Buying a Tesla can still be a gamble — find out below if a new Tesla SUV is the right ride for you.
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Tesla’s New SUV
According to a recent Reuters report, the EV automaker is currently working on developing an all-new compact electric SUV. This new vehicle would not be a variant or spin on preexisting models; rather, the new SUV would be a fresh design meant to reduce production costs — which, in turn, would lower the purchase price.
Compared to Tesla’s relatively compact SUV, the Model Y (which is 15.7 feet long), this new SUV would be approximately 14 feet long. It would also be defined by a much lighter frame, a single-motor design and a smaller battery than the Model Y. While these changes would significantly bring down the overall asking price of Tesla’s new ride, they would also decrease the SUV’s performance and overall driving range compared to Tesla’s existing fleet.
Will the Cost Be Worth the Cuts?
Currently, Tesla’s cheapest vehicle is the Model 3, which has a starting price of $38,630. Full specs remain to be seen for this potential new SUV — don’t expect to see it in production until at least 2027 — but using what is known about the Model 3 and Model Y, one can make a few predictions about this new, unnamed model.
The new SUV is being designed to cost less than the $38,000 Model 3. Given that, a target price between $25,000 and $30,000 is most likely.
In addition to a lower price point, charging costs would also be lower. The proposed new SUV would be slightly smaller than the Model Y — as a result, it would likely have lower charging costs as well. Projecting a slight decrease from Model Y charging prices, one can estimate the new SUV will cost approximately $7 to $8 for home charging and $15 to $25 for public charging. Driving the EV at least 1,000 miles per month, then, would rack up roughly $30 to $45 in monthly home charging fees, or $70 to $110 monthly for public charging. Meanwhile, it costs roughly $150 per month to fill the gas tank of a conventional car that gets 30 miles per gallon.
The Zebra has reported that, on average, Gen Z tends to avoid accumulating debt, and the approximate value of the cars they purchase is around $19,800 — still significantly lower than the assumed $25,000-to-$30,000 range of the new Tesla SUV.
A Good SUV for Gen Z?
Overall, Tesla’s proposed new SUV will likely be the best possible starter EV for shoppers hoping to save money while investing in clean energy. It won’t be flashy, but it could be one of the most affordable compact SUVs on the EV market. That said, its projected price will likely still keep it outside Gen Z’s general price range — making it a solid option primarily for higher-earning, older members of Gen Z.
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