Tesla‘s shares rebounded by nearly 12 per cent on Wall Street after announcing plans to launch “more affordable” cars by late 2024 or early 2025.
Despite this early trading surge, with gains reaching up to 16 per cent, the company’s shares have fallen by 35 per cent so far this year.
“These new vehicles, including more affordable models, will utilise aspects of the next-generation platform, as well as elements from our current platforms, and can be produced on the same manufacturing lines as our current range of vehicles,” the automaker said.
In this way, the company updated “its future vehicle lineup to accelerate the launch of new models ahead of the start of production in the second half of 2025.”
“We expect it to be more towards early 2025, if not by the end of this year,” Tesla CEO Elon Musk explained on an analyst call.
Specifically, the firm explained that this update “may result in less cost reduction than anticipated,” although it allows the company “to prudently increase its vehicle volumes more efficiently in terms of ‘Capex’ during times of uncertainty.”
“This would help us utilise our current maximum planned capacity of close to three million vehicles, allowing for growth of over 50 per cent compared to 2023 production before investing in new manufacturing lines,” Tesla detailed.
it is worth mentioning that Tesla’s attributable net profit dropped by 55 per cent between January and March 2024, to 1.129 billion dollars, while it recorded an adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 3.384 billion dollars, down 21 per cent from the first quarter of 2023.
The company attributed this volume decrease to the update of its Model 3 production ramp at the Fremont factory in California and to factory closures resulting from shipment diversions caused by “the Red Sea conflict and an attack on the Berlin gigafactory.”
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