Tesla has revised its plans for producing cheaper electric vehicles by utilizing both its current production lines and elements of its next-generation platform. While affordable models remain in development, they will not be built on the anticipated ‘unboxed’ platform.
Tesla has reversed its decision to produce the Model 2, its planned entry-level electric vehicle. Instead, the company will focus on designing new models by early 2025 and using existing manufacturing lines and platforms. This change in strategy coincides with Musk’s announcement that Tesla’s first low-cost vehicles will be produced using the existing production lines and available platforms.
Tesla, the electric vehicle giant, experienced a rise in its stock value ahead of the release of its first-quarter earnings report. The company is anticipated to report its lowest gross profit margin in over six years, following a challenging period marked by layoffs and discounts on its products. Despite the overall decline in Tesla’s stock price this year, investors are eagerly awaiting the company’s Q1 results and the potential insights into the fate of the upcoming Model 2 vehicle.
Tesla’s latest price cuts and strategic shifts highlight the company’s ongoing struggles amidst declining sales and a volatile stock price. CEO Elon Musk’s focus on the elusive robotaxi and potential delays to the Model 2 raise questions about Tesla’s future growth prospects. The company’s heavy reliance on cameras for its ‘Full Self Driving’ system draws criticism from industry experts who emphasize the limitations of such technology. Tesla’s declining share prices and production overages further compound the challenges the company faces.
