According to the results report for the third quarter, the corporation promised “more affordable models.”
The higher initial cost of Tesla’s electric vehicles in comparison to its gas-powered counterparts has long been one of the company’s most significant drawbacks. The lowest priced vehicle that it is now offering for sale is $42,490 before subsidies, and the average starting price of its 2024 models according to the Kelley Blue Book is slightly more than $63,000.
In its disclosure report for the third quarter, Tesla stated that the company is “making preparations” to sell new vehicles that are “more affordable models.” Additionally, the electric vehicle manufacturer’s cost of goods sold per vehicle dropped to “its lowest level ever” amounting to $35,1000.
According to the report, “Plans for new vehicles, including models that are more affordable, remain on track for production to begin in the first half of 2025.” These automobiles will make use of components of the platform that will be used in the next generation as well as components of the platforms that we are currently using, and they will be able to be manufactured on the same production lines as our existing vehicle lineup.
In addition, Tesla has stated that it intends to “begin launching” its more affordable electric vehicle models “in the first half of 2025.” Due to the fact that this phrasing is still somewhat flexible, there is no assurance that a new model will be brought to market in the same year.
The other thing that caught everyone off guard in Tesla’s report was the figures. Despite the fact that the Cybertruck was recalled for the fifth time and that the federal government was looking into the Full Self-Driving capability of Tesla’s electric vehicles, the company managed to have a very successful third quarter. Year-over-year, the automobile manufacturer had an increase in sales of 2 percent and an increase in net income of 8 percent, reaching $2.51 billion. Additionally, the revelation brings an end to the company’s four-quarter string of unmet earnings targets.