Tesla announced its decision to introduce “new models” by early 2025, utilizing existing platforms and production lines instead of pursuing an all-new model initially expected to cost $25,000.
Despite missing Wall Street expectations in first-quarter results, Tesla’s shares surged in after-hours trading on the prospect of accelerated new offerings.
CEO Elon Musk hinted at the introduction of more affordable models by early 2025, just before the previously targeted launch window for the Model 2.
Neither Musk nor Tesla directly addressed a recent Reuters report stating the scrapping of plans for the Model 2, which was anticipated to propel Tesla’s growth into a mass-market automaker.
Tesla’s discussion on new models lacked specifics regarding quantity, type, or target prices. These models will leverage current and next-generation platforms, potentially costing consumers more than the initially envisioned $25,000.
The automaker emphasized better capital expenditure control during “uncertain times” with its plan for new models, steering away from investing in a “revolutionary” manufacturing process.
This approach contrasts with Musk’s earlier assertion that the all-new affordable car would serve as a test bed for manufacturing innovation.
Tesla’s engineering chief highlighted the transferability of work on the next-generation affordable car to the vehicles slated for release early next year.
Despite the lack of clarity on whether these new vehicles will be entirely new models or modifications of existing ones, Tesla’s comments suggested a departure from plans for the Model 2.
Tesla mentioned a “purpose-built robotaxi product” without specifying a release timeline. Musk outlined ambitious visions for diversifying Tesla’s business into artificial intelligence and humanoid robots, positioning Tesla as more than just a carmaker.
