Tesla Plans Affordable EV

Elon Musk, Tesla's CEO, has confirmed the company's intention to develop a more affordable electric vehicle (EV). The new models could potentially be launched as early as the end of this year. It is still unclear whether these new vehicles will be next-generation or merely updated versions of existing models.

During an earnings call, Musk reassured investors of Tesla's commitment to a lower-cost vehicle. However, there are questions about the company's follow-through on the previously promised Model 2. The future vehicle may incorporate elements of Tesla's current platform and aspects of the company's next-generation platform.

UBS analyst Joseph Spak noted that many aspects of this more affordable car are 'still in flux.' There are also concerns about Tesla's ability to adhere to its new timeline for the vehicle's release, which is projected to be early next year.

Musk has also indicated an acceleration of new product launches to the second half of 2025, utilizing existing capacity. However, there are concerns about potential compromises on product quality to expedite these launches.