Tesla is shaking up its product roadmap in response to pressure on electric vehicle sales, with plans to launch more affordable models as early as next year. The announcement sent Tesla’s stock soaring over 11% in after-hours trading, despite limited details being shared with investors.
The company’s decision to accelerate its plans comes after reports that Tesla had abandoned work on a low-cost, next-generation car. While CEO Elon Musk dismissed these reports as false, sources have indicated that development of the EV has been delayed or de-emphasized within the company.
Tesla’s first-quarter earnings report revealed a 55% drop in profits, prompting the company to update its future vehicle lineup and prioritize the launch of new models ahead of schedule. These new offerings will be built on existing production lines and incorporate aspects of both current and next-generation platforms.
Investors will have to wait until August 8th to learn more about Tesla’s new product roadmap, including the highly anticipated reveal of the “Cybercab” robotaxi. Despite potential risks associated with the new platform, Tesla is confident in its ability to leverage existing technologies and processes to accelerate production and drive growth.
While the company aims to double its production by 2025, it acknowledges challenges ahead, including slower growth rates and workforce reductions. Musk remains optimistic about Tesla’s future, stating that it is time to reorganize the company for the next phase of growth.