Tesla has reaffirmed its commitment to launching budget-friendly electric vehicles (EVs) in the first half of 2025. The announcement has sparked renewed investor optimism, even as the company’s latest quarterly earnings fell short of Wall Street expectations, according to a report from Reuters. Despite a decline in vehicle deliveries last year, Tesla is pushing forward with its plans to introduce lower-cost models. The move aims to strengthen the company's market position and meet the increasing demand for affordable EV options. Additionally, Tesla remains focused on advancing its self-driving technology, which CEO Elon Musk considers essential for the company’s long-term financial growth.

Tesla: Self-driving ride-hailing tests start in June

During a recent investor and analyst call, Musk revealed that Tesla plans to deploy autonomous vehicles in Austin, Texas, by June 2025. These self-driving cars will operate without human drivers, but Musk emphasised that safety remains the top priority. In addition, Tesla’s Full Self-Driving (FSD) software will undergo unsupervised testing in multiple states, including California. The expansion of autonomous capabilities is seen as a crucial step toward Tesla’s goal of launching a fully autonomous ride-hailing service.

Cost-Cutting Strategies & Affordable EV Plans

Tesla has been actively reducing production costs, achieving its lowest-ever expenses for materials and labour in the fourth quarter. Reuters’ calculations indicate that the cost per vehicle has dropped significantly, from nearly $39,000 two years ago to approximately $33,000 today. While Tesla previously abandoned plans for a dedicated low-cost platform, the company now intends to use its existing production lines to manufacture more affordable models. This strategy will enable Tesla to bring lower-cost EVs to the market faster and more efficiently, further strengthening its competitive edge. With these developments, Tesla is positioning itself to meet the growing demand for budget-friendly EVs while advancing its autonomous driving technology, setting the stage for a transformative year ahead.