Electric vehicle automaker Tesla said Tuesday that it plans to introduce new models, including “more affordable” vehicles, before the second half of 2025. Share prices subsequently rose by nearly 9% in after-hours trading, despite a quarterly earnings report of $21.3 billion, a decrease from $23.33 billion a year earlier and lower than estimates of $22.15 billion.
CEO Elon Musk has previously set the target of launching a more affordable model, frequently referred to as the Model 2 and expected to cost around $25,000, on the same timeline. However, reports at the beginning of this month said that the company had discarded those plans, and Tuesday’s announcement seems to refer to other products.
The new car models would use Tesla’s current manufacturing lines, as well as aspects of both its current platform and a next-generation platform. This plan, however, could “result in achieving less cost reduction that previously expected,” Tesla warned. The company also hinted at a “purpose-built robotaxi product,” but did not offer a time for production or debut.
This plan, Tesla said, would allow the company to better manage its capital expenditures during “uncertain times.”
