Tesla has announced its decision to bring out “new models” by early 2025, using current platforms and production lines instead of pursuing a completely new model expected to cost $25,000.
Even though Tesla did not meet Wall Street’s expectations in its first-quarter results, its shares rose sharply in after-hours trading due to the potential for faster introduction of new vehicles.
CEO Elon Musk hinted at introducing more affordable models by early 2025, just before the previously planned launch window for the Model 2.
Tesla did not directly comment on a recent Reuters report that said plans for the Model 2 had been canceled, a move expected to help Tesla expand as a mass-market carmaker.
When discussing the new models, Tesla did not provide details about how many there would be, what types they would be, or their target prices. These models will use current and future platforms, which could mean they will cost more than the initially proposed $25,000.
Elon Musk attends an event (Via Jason Smith/Getty Images)
The company emphasized better control over capital spending during uncertain times with its plan for the new models, opting not to invest in a revolutionary manufacturing process.
This strategy differs from Musk’s previous statement that the new affordable car would be a test for innovative manufacturing methods.
Tesla’s head of engineering highlighted how work on the next-generation affordable car could be applied to vehicles expected to come out early next year.
While it’s not clear whether these new vehicles will be entirely new models or modifications of existing ones, Tesla’s statements suggest a shift from its plans for the Model 2.
Tesla mentioned a “purpose-built robotaxi product” without specifying when it would be released. Musk outlined ambitious plans to expand Tesla beyond being just a carmaker into artificial intelligence and humanoid robots.
