Tesla is once again offering a more affordable option

Tesla has reaffirmed its intentions to create more reasonably priced electric cars, dispelling rumors that CEO Elon Musk abandoned plans to create a less expensive “Model 2” in favor of putting a robotaxi first. Musk did not, however, clarify if the less expensive EV will be a fully new vehicle or a more basic version of an already-existing one.During the first quarter results call, Musk addressed investor concerns by saying, “There has been much discussion regarding our product roadmap.”

In an effort to accelerate the release of new models, he revealed changes to the portfolio of upcoming cars. Musk made a suggestion that these cars would show here by the end of this year, if not earlier in 2025.Alongside the existing architecture that powers Tesla’s well-liked Model 3 and Model Y, the future cars will also feature “aspects” of a next-generation platform. Elon Musk stressed that this advancement will make use of current manufacturing lines to increase efficiency rather than relying on the construction of new plants or lengthy production lines. According to Musk, this strategy might enable Tesla to produce more than 3 million cars a year. Tesla’s revenue for the first quarter of 2024 was $21 billion, a 9 percent decline from the same period the previous year. The net income, which came to $1.1 billion, also fell by 55%.

This quarter’s sales decline is a reflection of the declining demand for electric cars. Experts claim that the release of a more reasonably priced model is essential to Tesla’s future growth. Musk expressed his opinion that the market is mistaken in emphasizing hybrid cars over fully electric ones in response to concerns raised during the call. Musk emphasized that the goal of 7 million cars by year’s end includes those meant for a robotaxi fleet. “We’ll delve into this further on August 8th,” he said. Tesla is scheduled to reveal a new robotaxi vehicle on August 8. Tesla reiterates its goal to release EVs at a lower price, but it hasn’t said if it will release any brand-new, low-cost models. Less expensive options might be scaled-down versions of the company’s current Model 3 and Model Y, which bring in the majority of its sales. The Model 3 is currently retailing for $38,990, which is practically its lowest price to date but still beyond the much-anticipated $35,000 threshold from over ten years ago. Tesla has promised to further cut costs by optimizing the production process.When asked directly about less expensive electric vehicles (EVs) like the rumored Model 2 and his thoughts on the subject, Musk mostly sidestepped the question. On the other hand, he enthusiastically launched into talks about autonomy, autonomous technology, and even alien subjects.

Musk stated that exceptional sales follow the provision of a superior product at a competitive price. He restated Tesla’s pledge to increase affordability in order to improve the company’s entire value offer for clients.

Image: Tesla

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