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Tesla has announced its plans to introduce new models in the second half of 2025, including more affordable options that were previously rumored to be discontinued.
Tesla has announced its commitment to manufacturing more affordable electric vehicles, potentially by 2025. This contradicts recent speculation that Tesla CEO Elon Musk had abandoned plans for a more affordable “Model 2” car in order to prioritize the development of a robotaxi service. However, Musk did not provide any clarification on whether the more affordable electric vehicle would be a completely new model for Tesla or simplified versions of their existing vehicles.
“There has been significant discussion regarding the new product roadmap,” Musk stated during the company’s first quarter earnings call, acknowledging the concerns raised by investors regarding the postponed plans for a cost-effective electric vehicle.””We have made changes to our future vehicle lineup in order to expedite the release of new models.” We could potentially witness the arrival of the vehicles as early as 2025, if not sooner.
The vehicles will incorporate elements of both a next-generation platform and the current platform that supports the company’s popular Model 3 and Model Y. “This will not depend on a new factory or extensive new production lines. It will be manufactured on our existing production lines with much greater efficiency,” Musk stated, foreseeing a potential boost in the company’s production to over 3 million vehicles per year.
In the first quarter of 2024, Tesla’s revenue stood at $21 billion, reflecting a 9 percent decline compared to the previous year. The net income experienced a significant decline of 55 percent, amounting to $1.1 billion. The company experienced a decline in sales this quarter due to a decrease in demand for electric vehicles. Experts emphasize the importance of a more cost-effective model for Tesla’s future expansion.
At the beginning of the call, Musk highlighted his concerns about the market’s focus on hybrid vehicles rather than fully electric ones, stating that he believes this approach is not the most effective strategy.
“We will discuss this further on August 8th,” Musk stated, reaffirming his commitment to having a fleet of 7 million cars operating as robotaxis by the end of this year. On August 8th, Tesla has scheduled the unveiling of their latest robotaxi vehicle.
While Tesla has made promises to release more affordable electric vehicles, it has yet to confirm the introduction of entirely new, budget-friendly models. Cheaper models may consist of simplified versions of the Model 3 and Model Y vehicles, which are the main drivers of the company’s revenues.
Currently, the Model 3 is available for $38,990, which is close to its lowest price ever. However, it has not yet reached the long-awaited $35,000 price point that was promised almost ten years ago. The company has assured that a streamlined manufacturing process will lead to even lower costs.
WWhen an investor questioned Musk about more affordable electric vehicles like the Model 2 and his personal preferences, Musk was not very forthcoming with his response.On the other hand, he was enthusiastic about discussing autonomy, self-driving, and even aliens.
“If you have a fantastic product at an amazing price, sales will be outstanding,” Musk stated in response to a question about value. According to him, Tesla is committed to continuously enhancing affordability in order to provide better value for money.
