Following the firm’s announcement that it would speed up the release of more inexpensive automobiles, Tesla’s (TSLA) stock surged in post-market trade.
In a release to shareholders during the first quarter of 2025, Tesla stated, “We have modified our future vehicle line-up to speed the launch of new models ahead of our previously disclosed commencement of production in the second half of 2025.” “We will be able to create these new vehicles on the same manufacturing lines as our present vehicle line-up, and they will be able to employ both features of our current platforms and aspects of the next-generation platform. “This includes more economical versions.
Still, investors are pleased that Tesla has confirmed that the anticipated next-generation platform will power a mainstream electric vehicle (called the Model 2) that costs less than $30,000. Many had anticipated that Tesla would use the low-cost EV as a volume play, employing a novel “unboxed” production line to produce these cars at a low cost.
In the earnings announcement, Tesla stated, “Our purpose-built robotaxi product will continue to pursue a groundbreaking “unboxed” production strategy.”
