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HomeAutomotiveTesla CEO Says Affordable Electric Vehicle Still in the Works.

Tesla CEO Says Affordable Electric Vehicle Still in the Works.

After Chief Executive Officer Elon Musk refuted a report that the automaker had scrapped plans for a less expensive vehicle, Tesla shares recovered somewhat during intraday trading.

After Reuters reported on Friday that Tesla was giving up on the project, citing unnamed sources and internal company communications that it had examined, the stock dropped as much as 6.2%.

Using his social networking platform, X, Musk posted, “Reuters is lying.”

In September 2020, Musk made the first hint about a $25,000 model at an event the business hosted. The CEO stated at the time that he was certain Tesla could produce an electric vehicle at that price point in around three years due to a number of advancements the business was working on.

It’s getting expensive for Tesla not to have a more affordable model in its lineup after more than three years. In the fourth quarter of last year, the Austin-based company was outsold by China’s BYD Co., which sells a number of EVs for far less money. Since the beginning of the worldwide epidemic, Tesla has recorded a decline in quarterly car deliveries, which it revealed this week.

Musk stated that Tesla was “very far along” in producing a less expensive vehicle during the company’s most recent earnings call in January. Production of the vehicle is expected to begin around the end of the following year.

A new “revolutionary manufacturing system,” which he described as “far more advanced than any automotive manufacturing system in the world, by a significant margin,” was another highlight of his speech.

SUVs get a price slash.

In the meantime, Tesla is trying to get rid of its largest-ever stockpile by reducing the price of its best-selling car.

Rear-wheel drive Model Y sport utility cars are available for $4,600 less than the cost of custom-ordering the vehicle, thanks to the company’s inventory markdowns. Performance and long-range Model Ys are marked down by a minimum of $5,000.

After creating 46,561 more cars than it shipped in the first quarter and increasing the number of cars in inventory to a record high, Tesla is now giving discounts. Although the firm attributed the reduction in its worldwide sales in part to the closing of its German manufacturing plant and the conversion of its California plant to produce the updated Model 3 sedan, some analysts don’t buy it.

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