Recognizing the growing pressure from formidable competitors and declining sales figures, Tesla has devised an ambitious plan to bolster its presence in the electric vehicle industry through the introduction of various new models by early 2025. This strategic move, announced during Tesla’s recent conference call, generated a surge in the company’s share prices during after-hours trading.
Tesla’s Chief Executive, Elon Musk, unveiled the company’s plans to commence production of these new models in early 2025, with the possibility of an even earlier launch by the end of this year. These models will be manufactured utilizing a combination of Tesla’s current and next-generation platforms, offering a balance of affordability and cutting-edge technology.
In addition to the new models, Tesla hinted at the development of a “purpose-built robotaxi product” that will leverage a “revolutionary” manufacturing process. While a specific timeline for its release remains undisclosed, this announcement aligns with previous reports suggesting Tesla’s ongoing efforts to create a self-driving robotaxi based on the same platform designated for the Model 2.
To justify the introduction of new models, Tesla emphasized the need to exercise greater control over capital expenditures amidst uncertain market conditions. Despite Musk’s reluctance to divulge specific details about these new vehicles, investors expressed optimism about the company’s future prospects. Musk also outlined Tesla’s broader aspirations to diversify its business beyond automotive, including ventures into artificial intelligence, humanoid robots, and operating a vast fleet of autonomous vehicles.
While the announcement of new models was met with enthusiasm by investors, some analysts remained cautious, citing Tesla’s history of delays in product rollouts. The decision to introduce new capacity mirrors similar moves by other automakers in the US, including General Motors and Ford Motor, in response to slowing EV demand and intensifying competition, particularly from Chinese EV manufacturers.
Despite a lacklustre quarterly performance, Tesla’s stock rebounded significantly, adding nearly $50 billion to its market capitalisation and partially reversing a steep decline observed earlier in 2024. The company reported a decline in quarterly revenue for the first time since 2020, attributed to repeated price cuts, with net profit also taking a hit compared to the previous year.
