Tesla has reiterated its plan to begin the production of a more affordable electric vehicle in the first half of 2025, maintaining the schedule despite the contradictory reports and the continuous skepticism of the industry. During the company’s latest earnings call, executives confirmed that production preparations are complete and the launch is still scheduled for June.
This comes days after Reuters reportedCiting unidentified sources, that the EV of lower cost of Tesla, interclined with a name in code “E41”, had been delayed, which could boost the timeline at the end of 2025 or early 2026. According to that report, the tesla goal of assembling up to a quarter of a million units of the new model was being recovered, with the changing internal objectives and the release date of clear review.
In profits callVice President of Vehicle Engineering of Tesla, Lars Moravy, backed that narrative, emphasizing that the company is ready to start building the vehicle in the existing assembly lines. “The models that come out in the coming months will look like the form and shall shape the cars we currently do,” said Moravy. “The key is that they will be affordable and you can buy one.” CFO Vaibhav Taneja also confirmed the June production objective, stating that the necessary updates to accommodate the new models were completed along with the recent changes to the Y and model lines.
As digital trends are described in their recent coverage, the affordable model is expected to probably a small version of the model and come with a smaller footprint and a lower price, potentially less than $ 40,000 before the incentives. According to reports, Tesla takes advantage of a greater local supply of pieces to help protect the model from possible tariffs and commercial volatility.
Even so, Tesla faces assembly pressure. The earnings of the first quarter of the 2025 car manufacturer revealed a strong 71% drop in income, and global sales have been in a downward trend. In California, Tesla’s market share fell below 50% for the first time this year. Analysts and market observers continue to point out the polarizing political activity of the CEO Elon Musk as a factor that cushions the feeling of the consumer.
For Tesla, the EV affordable is more than a product launch: it is a proof of whether the company can restore the impulse in a market that is quickly evolving without it.
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