Musk discussed the possibility of a Tesla Model Y priced below $20,000, stating that it could potentially sell five million units. He emphasized the significance of making electric vehicles accessible to a wider range of consumers, calling it a "game changer."

"For most people, it's not a question of whether they want a Tesla. They simply do not have enough money to afford one. So we have to make it affordable, that's essential," Musk asserted, highlighting the need for a Tesla model that is priced within reach for a larger demographic.

While Musk's vision for a budget-friendly Tesla isn't entirely new, as other car manufacturers have attempted to create affordable vehicles in the past, he believes that Tesla can find innovative ways to make their current models more accessible. Musk mentioned during a previous earnings conference call that they would leverage aspects from the upcoming generation platform as well as their existing platforms to build more affordable cars. These vehicles would be manufactured alongside Tesla's existing lineup.

According to industry insiders, the speculated low-cost vehicle from Tesla is expected to be a streamlined adaptation based on the Model Y, as reported in the June AutoForecast Monthly from AutoForecast Solutions.

Analysts seem divided on the feasibility and potential compromises of a sub-$20,000 Tesla. Sam Fiorani from AutoForecast Solutions pointed out that Tesla currently makes less profit per vehicle compared to mainstream automakers, leaving limited room for substantial price cuts. However, he remained optimistic about the future of electric vehicles, predicting significant advancements in the coming years that would make today's EVs appear outdated.

While a $20,000 Tesla may come with compromises, including reduced features or performance, it could still attract a considerable customer base. Analysts believe that mainstream car buyers are not just looking for a cheaper electric vehicle but also expect advancements in technology and overall driving experience.

Currently, Tesla is taking steps to make their vehicles more affordable through leasing options. For instance, a Model 3 can be leased for $299 per month with $2,999 down (before taxes and fees). This pricing puts Tesla's offering within the affordable range for more buyers compared to a year ago, making it competitive with traditionally fueled cars from companies like Honda.

As Tesla continues to explore avenues to bring down the cost of its vehicles, the aspiration for a sub-$20,000 Tesla Model Y showcases Elon Musk's unwavering determination to make sustainable transportation accessible to a larger population.