Tesla’s new growth plan, working on more affordable models
Tesla is planning to launch its “more affordable model” Model 2 at the end of 2025. The company said on Tuesday that they are working to launch a cheaper model and it will go into the production phase by the second quarter of 2025. However, Elon Musk has not stated much about their projects.
With these new projects, Tesla investors are shocked. Investors have asked the company to provide them with more details. But Musk has replied that they will talk about this more on 8th August, on which Tesla has planned to launch their Robotaxi.
“We really should be thought of as an AI-robotics company,” he said. “If you value Tesla as just an auto company, it’s just the wrong framework. If somebody doesn’t believe that Tesla will solve autonomy, I think they should not be an investor in the company.”
Falls in Tesla Economy
If compared to the last year the company faced a fall in its economy. As per the reports from January to March, the company made $1.13 billion. But in the last year, it was $2.51 billion. However, the investors have asked the company to make a move to increase their profile and sales.
Also read: How United Airlines use AI to make flying a bit easier?
Tesla has sent a letter to the investors saying that Tesla will take steps to grow its sales. The company has started working on a smaller and more affordable production model. This new model expectedly can cost around $25,000. However, it will have some features of the current model and Tesla will also include other features in this.
“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the investor letter said.
Tesla, CEO Elon Musk said that “he expects production to start in the second half of next year “if not late this year.” New factories or massive new production lines won’t be needed for the new vehicles, Musk said. After this letter, Analysts are saying that the investors are more assured now but if in the second quarter, the sales go down then it can be a concern for Tesla.
Additionally, to cut down its cost Tesla has also announced to cut down 10% of its employees, last week. At this time also the company has said that they are starting “a new phase of development”. For now, Analyst are keeping their eyes on the next quarter’s sales of Tesla.
