Elon Musk Tells Investors Cheaper Tesla Electric Cars Should Arrive Ahead of Schedule

Tesla shared its first-quarter financial results pinch its stockholders connected Tuesday and said that it has sped up nan motorboat of new, much affordable electrical cars.

Tesla reported its biggest gross diminution successful 12 years, pinch a 9% driblet from net past year. The institution made $21.3 cardinal successful Q1 2024, down from $23.3 cardinal astatine nan aforesaid clip past twelvemonth and $25.2 cardinal past quarter.

On a Tuesday telephone announcing nan earnings, Tesla CEO Elon Musk offset news of nan diminution pinch an update that nan institution will commencement producing new, much affordable electrical cars successful "early 2025 if not precocious this year." Tesla stock surged upon nan news.

Related: Tesla Sales, Deliveries Drop for First Time Since 2020

Tesla's cheapest offering astatine nan infinitesimal is its $38,990 Model 3. The institution announced an upgraded Model 3 Performance starting astatine $52,990 up of its net telephone connected Tuesday.

Tesla Model 3. Photo Credit: Na Bian/Bloomberg via Getty Images

The announcement accelerates nan timeline to cheaper electrical vehicles (EVs). Tesla previously stated that it would commencement producing much affordable EVs successful nan 2nd half of 2025.

In a slide deck shared pinch investors, Tesla stated that nan caller EVs, including nan cheaper models, will incorporated acquainted Tesla features into a new, next-generation platform, but nan company's wide maturation rates could beryllium "notably lower" this twelvemonth compared to past twelvemonth arsenic its teams activity connected it.

Related: Elon Musk Informs Tesla Staff That Layoffs Will Affect astatine Least 14,000 Employees — Read nan Leaked Email

Musk emphasized to shareholders that Tesla is much than conscionable an car company, arguing that it should beryllium considered much for illustration an AI tech company.

"The measurement to deliberation of Tesla is almost wholly successful position of solving autonomy, and being capable to move connected that autonomy for a gigantic fleet," Musk said.

Tesla has a humanoid robot successful development, Musk told investors, and it could beryllium capable to thief successful Tesla factories by nan extremity of this year.

Related: Elon Musk Reveals When Tesla Will Release Its First Robotaxi

Earlier this month, Musk posted connected X that nan Tesla robotaxi, a afloat autonomous, self-driving electrical car, will get this August.

Tesla besides laid disconnected astatine slightest 14,000 employees past week.