A cheaper Tesla is back on the menu

Tesla says it will build much affordable electrical vehicles — possibly arsenic soon arsenic 2025 — refuting caller reports that Tesla CEO Elon Musk had canceled plans for a cheaper “Model 2” conveyance successful favour of getting a robotaxi retired nan door. But Musk didn’t explain whether nan lower-cost EV would beryllium a marque caller exemplary for Tesla aliases simplified versions of its existent vehicles.

“In position of a caller merchandise roadmap, there’s been a batch of talk,” Musk said during nan company’s first 4th net call, addressing nan concerns investors person expressed complete nan past period astir nan delayed plans for a low-cost EV. “We’ve updated our early conveyance lineup to accelerate nan motorboat of caller models.” Musk said we mightiness spot nan vehicles successful early 2025, if not later this year.

The vehicles will blend “aspects” of a next-generation level pinch nan existent level that undergirds nan company’s top-selling Model 3 and Model Y. “This is not contingent connected a caller mill aliases monolithic caller accumulation lines, it’ll beryllium made connected our existent accumulation lines overmuch much efficiently,” Musk said, predicting it could accelerate nan company’s accumulation to complete 3 cardinal vehicles a year.

Tesla has reported $21 cardinal successful gross for nan first 4th of 2024, a 9 percent driblet twelvemonth complete year. Net income dropped 55 percent to $1.1 billion. The institution sold less models this 4th arsenic request for electrical vehicles cooled. Analysts opportunity a much affordable exemplary is important to Tesla’s early growth.

Musk started nan telephone by addressing concerns that nan marketplace is emphasizing nan improvement of hybrid vehicles complete afloat electrical ones, which he believes is “not nan correct strategy.”

“We’ll talk astir this much connected August 8th,” Musk said, arsenic he reemphasized that 7 cardinal cars by nan extremity of this twelvemonth will beryllium portion of a robotaxi fleet. August 8th is nan day Tesla plans to unveil a caller robotaxi vehicle.

Although Tesla is again promising to merchandise cheaper EVs, it hasn’t confirmed whether wholly caller inexpensive models will come. It’s imaginable cheaper models could conscionable beryllium stripped down Model 3 and Model Y vehicles, which unsocial thrust nan mostly of nan company’s revenues.

Right now, you tin bargain a Model 3 for $38,990, which is astir nan cheapest nan conveyance has ever been — but still not astatine nan elusive $35,000 value point that was promised almost a decade ago. The institution has promised that a simplified “unboxed” manufacturing process will bring down costs moreover further.

When asked straight by an investor astir cheaper EVs for illustration Model 2 and wherever Musk’s “heart is at,” Musk mostly unopen down connected nan subject. In contrast, he was happy to spell connected astatine magnitude astir autonomy, self-driving, and moreover aliens.

“If you person a awesome merchandise astatine a awesome price, income will beryllium excellent,” Musk said astatine 1 point, responding to a mobility astir value. He said Tesla will support improving affordability to make nan “value for money” better.