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"Teslas are not affordable": Elon Musk flags new, cheaper hatchback that would take fight to Toyota Corolla Hybrid

Elon Musk says EVs cost too much.

If you think the the $73,900 starting price for the Tesla Model 3 in Australia - the brand's cheapest offering here - is too expensive, you're not alone.

In fact, even Elon Musk has begun blasting the affordability, of lack there of, of Tesla products, vowing to "fix that" on a recent earnings call with investors.

"It is important to make the car affordable. Like the thing that bugs me the most about where we are right now is that our cars are not affordable enough. We need to fix that," he said.

"We want to be slightly positive and maximise growth, and make the cars as affordable as possible.”

But how do you fix it? The solution, it seems, is to launch a new Tesla Model 2 - one that will likely be designed and built in Germany - that would take the shape of a "European-style hatchback".

Like most Tesla news, that last bit came directly from a Tweet from Musk, who replied to a fan asking about a hatchback with: "Probably a good one to design and engineer in Germany."

Either way, Musk appears determined to lower the cost of entry to a Tesla vehicle - whether with cheaper Model 3s or an all-new Model 2 - which can only be good news for the brand's fans around the world.