Amidst a sales decline, Tesla plans to accelerate the release of new, more affordable electric vehicles (EVs). The company’s CEO, Elon Musk, has previously indicated that Tesla will introduce a model priced below £21,500 ($25,000). Despite rumors of abandoning this project in favor of developing a self-driving robotaxi, Tesla has confirmed that it remains committed to introducing a cost-effective model.
Tesla’s decision to prioritize affordable EVs comes after a record sales slump over the past year. New sales fell in 2024 for the first time since 2019, with profits slashed by a whopping 55%. The share price also fell by 40% as a general slow-down in EV demand took the brunt of the blame. The decline was also aided by stiff competition from Chinese brands, which could afford to offer EVs at lower prices thanks to heavy state subsidies.
However, Mr. Musk recommitted Tesla to its EV-only output, slamming rival companies for pulling back on their production. He said: “A lot of other auto manufacturers are pulling back on EVs and pursuing plug-in hybrids instead. We believe this is not the right strategy, and electric vehicles will ultimately dominate the market.”
Despite the recent sales slump, Tesla remains committed to its mission of accelerating the transition to sustainable energy. The company’s plans to release new, more affordable EVs are a significant step in that direction.
