Tesla to Launch More Affordable Models to Boost Sales
After experiencing its first annual decline in sales, Tesla is gearing up to launch a range of “more affordable models” in an effort to broaden its appeal in the market. The electric car manufacturer sold 1.79 million cars in the previous year, a slight decrease from 1.81 million in 2023.
The upcoming cars are expected to increase Tesla’s annual output by over 60%, aiming to reach around 3.0 million cars. Production of these new models is scheduled to begin in the first half of 2025.
These new vehicles will incorporate elements from the existing Model 3 and Model Y platforms, along with the new architecture unveiled by the company last summer. They will be manufactured on the same factory lines as Tesla’s current lineup, suggesting that they are an evolution rather than completely new models.
Although Tesla has not yet revealed these new cars, it is speculated that they could be variants of the Model 3 and Model Y, as the company typically unveils new vehicles years before production. For instance, the Cybertruck was showcased in 2019 but deliveries only commenced in November 2023.
CEO Elon Musk’s recent announcement brings clarity to months of speculation and conflicting reports. Despite denying rumors of the cancellation of the ‘Model 2’ last year, Musk hinted at the possibility of a $25,000 electric car during the Cybercab unveiling event in October.
These new models are not expected to directly compete with European superminis like the Renault 5 and Citroën ë-C3. Instead, they may be priced around £30,000 to fend off competition from Chinese automakers like Nio, BYD, and Xpeng.
