Tesla to release ‘more affordable’ electric cars in early 2025

Tesla plans to introduce «more affordable» electric car models in the first half of 2025. This was revealed in a report for the third quarter of 2024, where the company noted that it is preparing to launch new, more budget-friendly variants of the cars.

Tesla’s strategy: make electric cars more affordable

«To accelerate the world’s transition to sustainable energy, we must make electric vehicles affordable for everyone, including lowering the cost of ownership per mile to levels competitive with other modes of transportation»” the company said in a statement. Tesla continues to prepare for new vehicles, including more budget models that will begin hitting the market in the first half of 2025.

Tesla is continuing to prepare for new vehicles, including more budget models that will begin hitting the market in the first half of 2025.

Tesla had previously abandoned the idea of releasing a «Model 2» costing around $25,000, but after a negative reaction from investors, company CEO Ilon Musk has reaffirmed those plans. True, it is still unclear whether it will be an all-new model or a more affordable version of the Model 3. Musk also said that the two-seat Cybercab will hit the market in 2026 at a price of $30,000.

Musk also said that the two-seat Cybercab will be on the market in 2026 at a price of $30,000.

Tesla’s financial results for the third quarter of 2024

For the third quarter of 2024, Tesla earned $2.2 billion in net income on revenue of $25.2 billion. That’s up 7% from a year earlier, when revenue was $23.4 billion and net income rose 17%. Those results beat analysts’ expectations, who had predicted a 9% drop in profits.

The results beat analysts’ expectations of a 9% drop in profits.

The company’s revenue from the sale of regulatory credits to other automakers also remains strong. Tesla said it was «second-best quarter for regulatory credit revenue» as other manufacturers are still lagging behind in meeting emissions requirements.

Tesla said it was «second-best quarter for regulatory credit revenue» as other manufacturers are still lagging in meeting emissions requirements.

Margin and Cost of Production

Marginability was back in the spotlight as investors expected improvements after months of declining margins. Continued discounts and weakening demand, as well as more affordable financing, had driven the company’s margins down to their lowest level in six years. Still, there were signs of improvement, with Tesla’s gross margin at 19.8% on a generally accepted accounting basis, up slightly from 18% in the previous quarter and slightly higher than the third quarter of 2023.

Tesla’s gross margin on a generally accepted accounting basis was 19.8%, up slightly from 18% in the previous quarter and slightly higher than the third quarter of 2023.

In addition, Tesla reported that the cost to produce a single vehicle hit a record low of $35,100.

Delivery and Competition

Tesla delivered 462,890 vehicles in the third quarter, up 6.3% from the previous quarter, but analysts had expected a higher figure. Now there is concern that the company could face its first annual decline in deliveries after years of rapid growth.

The company is now facing its first annual decline in deliveries after years of rapid growth.

Tesla continues to face increasing competition and declining demand for electric vehicles, especially in the Chinese market, where BYD and other manufacturers remain the company’s main rival.

Tesla’s main rival is BYD and other manufacturers.

Doubts surrounding Tesla’s robotics ambitions

Ilon Musk’s attempts to refocus the company on making robots and autonomous cars have drawn skepticism. Tesla showed off several robot concepts at a recent event, but didn’t provide specific details on how the technology would work. The company’s stock plummeted afterward, and has not been able to recover since.

Afterward, the company’s stock fell sharply, and has failed to recover since.