TESLA is set to speed up its release of “affordable” EVs after suffering its worst sales slump in a decade.
The company plans to “accelerate the launch of new models” within just months.
Company boss Elon Musk has previously indicated that Tesla, which he co-founded in 2003, will look to bring a car to market for less than £21,500 ($25,000).
There was some suggestion that this project had been abandoned in favour of the development of a self-driving “robotaxi“, but the manufacturer sought to ease concerns in a statement to investors.
A spokesperson confirmed that the brand would be refreshing its lineup and specifically mentioned a cost-effective model.
They said: “We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025.
“These new vehicles, including more affordable models, will utilise aspects of the next generation [manufacturing] platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up.
“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes… during uncertain times.”
Tesla: A short history
Tesla was founded in California in 2003 by Martin Eberhard and Marc Tarpenning, helped by over £5 million in funding from Elon Musk.
Musk, who has since become the brand’s CEO, was known at the time for having started up space exploration company SpaceX the previous year.
Tesla, named for pioneering physicist Nikola Tesla, was the first manufacturer to commit to EV only production.
The first model, the Tesla Roadster, debuted in 2008 and was built in a former Chevrolet factory.
Since then, the brand has become the largest EV manufacturer in the world and one of the US’ most high-profile companies.
As of 2024, it is valued at over £402 billion and is at the forefront of the push towards net zero transport.
And the company has indeed faced uncertain times, with 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%.
We believe…electric vehicles will ultimately dominate the market.
Elon Musk
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.”
He also addressed the wide-ranging cuts made earlier this month, which saw around 14,000 workers lose their jobs, calling it a “difficult decision”.
Nonetheless, even the US-based billionaire is suffering at the hands of the slowdown, having lost his title as the world’s richest man as his net worth was slashed to just £131.6 billion.