Tesla to start 'launching’ new, more affordable EVs from 2025, claims Elon Musk at earnings call

Tesla is gearing up to address one of the biggest hurdles faced by its buyers — high upfront costs. The electric carmaker has long been criticised for the steep price tags on its vehicles compared to petrol-powered alternatives.

Currently, the most affordable Tesla starts at $42,490 before subsidies, and the average sticker price for its 2024 models sits just over $63,000, according to Kelley Blue Book.

However, things might be about to change. In its latest third-quarter report, Tesla shared that it is preparing to introduce new, more affordable models.

The company revealed that the cost of producing each car has now dropped to an all-time low of $35,100, hinting at a possible shift towards budget-friendly offerings.

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Tesla mentioned that production for these cheaper models is on track to begin in the first half of 2025.

These upcoming vehicles are expected to integrate parts of Tesla’s new generation platform while still sharing some elements with current models. The exciting bit? They’ll roll off the same production lines as the existing line-up, streamlining the manufacturing process.

That said, Tesla kept things a bit vague, only stating it would “begin launching” the cheaper models by mid-2025 — leaving some room for flexibility in timelines.

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While the spotlight is on these future models, Tesla’s current performance shouldn’t go unnoticed. Despite recent setbacks, including a fifth recall of its long-awaited Cybertruck and an ongoing federal probe into the Full Self-Driving software, Tesla had a solid third quarter.

Net income rose by 8 per cent to $2.51 billion, with a modest 2 per cent increase in sales compared to last year. This marks the end of a streak where Tesla had missed its earnings targets for the past four quarters.

All eyes are now on Tesla’s 2025 timeline, as customers and investors eagerly await whether the carmaker can successfully bring these affordable electric cars to market and maintain its momentum in the ever-competitive EV landscape.