Tesla is promising more affordable EVs in 2025
What's the story
Tesla has announced plans to launch new and more affordable electric vehicles (EVs) in 2025.
The company's third-quarter disclosure report revealed that preparations are underway for these cost-effective models.
Currently, the cheapest car offered by Tesla is priced at $42,490 before subsidies, with an average starting price of over $63,000 for its 2024 models, according to Kelley Blue Book.
Cost efficiency
Cost reduction and production plans
Tesla has been able to bring down its cost of goods sold per vehicle to an all-time low of $35,100.
The company's report added, "Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025."
These budget-friendly EVs will include features from both current and next-generation platforms.
Tesla also says it will "begin launching" these cheaper EV models "in the first half of 2025" itself.
Financial growth
Tesla's Q3 performance amid challenges
Despite facing hurdles like the Cybertruck's fifth recall and a federal probe into its EVs's Full Self-Driving feature, Tesla had a strong third quarter.
The company's profit rose by 17% to $2.17 billion in the quarter from July through September.
The company sold 462,890 vehicles during Q3, a 6.4% rise from last year.
The strong financial performance ended Tesla's four-quarter streak of missing earnings targets, showing that it is still resilient in the face of adversity.