Tesla announced on Tuesday that it will introduce “new models” by early 2025 using its current platforms and production lines, abandoning more ambitious plans to produce an all-new model projected to cost $25,000.
Following months of decline during which Tesla has faced tough competition and falling sales, the promise of new offerings on a faster timeline sent Tesla shares rising in after-hours trading. This was a much-needed rise. Tesla’s gains happened despite the fact that its first-quarter results missed Wall Street expectations.
Elon Musk, the company’s CEO, said that the new cars would come in more reasonably priced variants that would go into production by the beginning of 2025 but he did not provide any further information. That comes well before the deadline Musk had set for the introduction of the brand-new, inexpensive Model 2, also known as the Model 2.
On April 5, Reuters exclusively revealed that Tesla had scrapped its plans for the Model 2, which was anticipated by investors to accelerate the company’s growth into a mass-market automaker. Musk first responded to the report by posting on his social media site X, “Reuters is lying,” without mentioning any inaccuracies.
On Tuesday, neither Tesla nor Musk responded directly to the Reuters report. Instead, they talked about undisclosed new models that looked to be different products, without stating how many, what type, or their projected costs.