In a strategic shift, Elon Musk’s Tesla announces plans to introduce more affordable electric vehicles (EVs) while altering its manufacturing approach. The move comes amidst reports of changes in production plans and clarification from the company’s recent financial results.
According to a report by Electrek, Tesla aims to roll out cheaper EVs utilizing its existing production lines. This decision follows the development of a “next-generation vehicle platform” enabling a new manufacturing process dubbed “unboxed,” expected to reduce EV costs significantly.
Previous discussions by Tesla hinted at the release of two upcoming vehicles on this platform, notably a model smaller and cheaper than the popular Model 3, colloquially known as the “$25,000 Tesla” or “Model 2.”
Additionally, Tesla remains committed to its Robotaxi project designed for self-driving capabilities.
Recent controversies arose when Elon Musk refuted Reuters’ claims of canceling the promised affordable car, labeling them as “liars.” However, sources reported by Elektrek confirmed that Musk indeed halted work on the new cheaper vehicle, code-named NV9, and canceled plans for a Gigafactory Texas expansion.
Tesla’s Q1 2024 financial results corroborated these changes in strategy. The company confirmed adjustments to its future vehicle lineup, accelerating the launch of new models ahead of the previously communicated schedule. These models, including more affordable options, will utilize aspects of both the next-generation platform and current platforms, allowing production on existing manufacturing lines.
While the shift confirms the continuation of more affordable vehicles, it signals a departure from the initially planned production lines based on the “unboxed” system. However, Tesla reassures stakeholders that the previously announced Robotaxi will still leverage the new manufacturing approach.
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