Tesla promised to speed up the launch of more affordable models of its electric cars, a request that boosted the company’s shares and helped it recover some of its losses. The electric car maker is facing a number of problems, including a sharp decline in sales and large layoffs.
KEY FACTS
Tesla seems to have given up on its ambitions to produce an all-new model. Instead, it plans to «update its future car line» to accelerate the launch of new models before 2025. This includes «more affordable» cars that can be produced on existing production lines. These models will be used as a «point of departure» for future innovations. The cars will combine «aspects» of a next-generation platform with the current platform that underpins the company’s best-selling Model 3 and Model Y models.After the news, the company’s shares rose by 12%. The increase came despite the company’s first-quarter results that fell short of Wall Street expectations. Analysts say a more affordable model is critical to Tesla’s future growth.
WHAT TO WATCH FOR
Details about the new models that the company will launch on the market are missing. Musk promised to raise the curtain in early August this year, when Tesla plans to introduce a robotic taxi to the market.
BIG NUMBER
For the first quarter of 2024, Tesla reported revenue of $21 billion, down 9% year over year. Net profit fell 55% to $1.1 billion. The company has sold fewer models this quarter due to a drop in market demand.
KEY STORY
Elon Musk has been promising for years that he would launch cheaper and more affordable Tesla models at a price of around $25,000. For the first time such ambitions appeared in 2018. Tesla is struggling with a number of issues, including a decline in demand for electric cars, lower revenue and high costs, which it plans to reduce by cutting more than 10% of its workforce.
