Tesla plans to release a more affordable electric vehicle (EV) in the coming months following a decline in sales and profits.
In the UK Tesla’s lowest priced new car currently, the Tesla Model 3, starts at £39,990 for a derivative capable of 318 miles.
Tesla’s decision comes after a drop in its global new car sales so far in 2024, marking the first decline since 2019, leading to a 55% decrease in profits and a decline in its share price.
That comes after it achieved 1.8 million car sales in 2023.
Tesla aims to reassure investors by accelerating the launch of new vehicles, including more affordable options.
AM reported in January that its boss Elon Musk has a vision for a new electric car that could be priced below £30,000 and would launch in late 2025.
Now, in its latest update Tesla said: “We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025.
“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes… during uncertain times.”
Reports had previousl suggested that Tesla was focused on developing self-driving “robotaxis”.
But now the company, which had set the EV bar for many western carmakers, faces stiff competition from Chinese manufacturers entering the market with low-priced electric cars on a global scale.