Elon Musk: Tesla’s Affordable Electric Cars Coming Sooner Than Expected

Tesla shared its first-quarter financial results with its stockholders on Tuesday, revealing a 9% drop in revenue compared to the previous year. Despite this decline, CEO Elon Musk announced that the company will be launching new, more affordable electric cars sooner than expected.

The electric car company reported $21.3 billion in revenue for Q1 2024, down from $23.3 billion the previous year and $25.2 billion in the last quarter. However, Musk shared during a call with investors that Tesla will begin producing new, more affordable electric cars as early as late this year or early 2025.

Currently, Tesla’s cheapest offering is the $38,990 Model 3, but the company announced an upgraded Model 3 Performance starting at $52,990 ahead of the earnings call. This news caused Tesla’s stock to surge, despite the revenue decline.

The accelerated timeline for the launch of more affordable electric vehicles is a significant development for Tesla, as the company had previously stated that these models would not be available until the second half of 2025. The new EVs will feature familiar Tesla features on a next-generation platform, but the company cautioned that its overall growth rates may be lower this year as teams work on the new models.

Musk also emphasized Tesla’s focus on autonomy and AI technology, revealing that the company is developing a humanoid robot that could assist in Tesla factories by the end of the year. Additionally, Musk recently announced plans for a Tesla robotaxi, a fully autonomous self-driving electric car, to be released in August.