Photo: Reuters
Tesla CEO Elon Musk has promised to bring ‘more affordable EV models’ than ever before.
Tesla’s share price rose immediately after Musk’s announcement on Tuesday. Meanwhile, the company’s revenue fell nine percent in the first quarter of the year.
A year ago, Tesla’s revenue was $2,333 million, which dropped to $2,133 million this year. Even in the last quarter of last year, the company’s income was more than two and a half billion dollars.
Tesla has seen its share price fall 40 percent this year before the company’s share price rose nearly 11 percent by Tuesday’s close. This means that the company is going through very bad times.
Tesla’s revenue fell more than 50 percent to $1.1 billion in the first quarter of the year, while the EV giant’s dividend fell nearly 20 percent, partly due to lower vehicle prices.
However, the company’s share price rebounded after the announcement of the new model on Tuesday. Considering the pressure of competing companies and declining sales of own products, it can be called a big achievement.
Musk says production of Tesla’s promised “new affordable models” could begin “as early as 2025, if not this year.”
However, he did not agree to give any details about when the new car may come to the market or about it.
According to a report by the British daily Independent, the capacity of these affordable models will be less than the company’s older ‘Model 3’. Recently, the price of this model has been reduced to 39 thousand dollars in the United States.
Earlier, Reuters reported that Tesla had scrapped initial plans to build its Model 2, which investors had hoped would be the driving force behind the company’s progress.
However, Musk denied the report and posted on social media X, ‘Reuters is lying’. However, he did not identify where they gave wrong information.
Musk said the new cars will bring next-generation integration with the company’s traditional manufacturing sector.
A simple ‘unboxed’ production process could bring down car manufacturing costs, he promises.
“It’s not a case of suddenly building new factories or large manufacturing plants, the production systems we have now are able to produce new cars in an efficient way,” said Tesla boss Musk.
“We think there will be better results in the second quarter.”
