Tesla Accelerates Launch of Affordable EVs Despite Revenue Decline
Tesla recently shared its first-quarter financial results with stockholders, revealing a 9% drop in revenue compared to the previous year. Despite this decline, Tesla CEO Elon Musk announced on a call that the company will be accelerating the launch of new, more affordable electric cars, potentially as early as late this year.
The news of more affordable EVs sent Tesla stock soaring, with investors eagerly anticipating the new offerings. Currently, Tesla’s cheapest model is the $38,990 Model 3, but the company also announced an upgraded Model 3 Performance starting at $52,990.
Tesla Model 3. Photo Credit: Na Bian/Bloomberg via Getty Images
This accelerated timeline for the launch of more affordable EVs marks a significant shift in Tesla’s strategy. The company had previously planned to introduce these models in the second half of 2025, but thanks to new developments, they could arrive much sooner.
In a slide deck shared with investors, Tesla outlined its plans to incorporate familiar features into the new models while working on a next-generation platform. However, the company may experience lower growth rates this year as teams focus on these developments.
Elon Musk emphasized Tesla’s position as more than just an auto company, positioning itself as AI tech-focused. He highlighted the company’s ambitious projects, including a humanoid robot for Tesla factories and a fully autonomous robotaxi set to debut this August.
Despite revenue challenges, Tesla’s commitment to innovation and expanding its product offerings demonstrates its dedication to revolutionizing the electric vehicle industry.