Tesla denies having given up on the economical Model 2, but is it true?
Tesla promised to start selling cheaper models next year, just days after a Reuters article revealed the company had shelved plans for a new Tesla that would cost just $25,000. So Elon Musk's car company denies the news agency's news.
News of Tesla's abandonment of the Model 2 came amid declining sales and profits and a decision to cut a tenth of the company's global workforce. Reuters also noted increased competition from Chinese electric vehicle makers.
Ipetsi of Model 2 from carmagazine.co.uk
Tesla's deliveries plummeted in the first quarter for the first annual decline since the pandemic began in 2020, missing analysts' forecasts by a mile, a sign that not even price cuts have been able to stem increasingly fierce competition in the market. EV market.
Tesla turnover
Profits fell 50%, disappointing investors and causing the company's stock price to plummet, making any good news urgent. Tesla hit the mark: it declared that it would bring forward the release date of new low-cost models. According to the BBC, these would be produced on the existing platform and launched in the second half of 2025.
Reuters quoted the company as warning that this schedule change could "lead to less cost reduction than previously expected." This suggests that the price of the new models will probably not be as low as the $25,000 promised for the Model 2. However, if this were not the case then the “Low Price Car” project would have already fallen through, because there are much more affordable Chinese cars .
The decision is based on a substantial reduction in risk appetite by Tesla management, likely influenced by recent financial results and intensifying competition with Chinese electric vehicle manufacturers. Shelving the Model 2 and choosing to produce the cars on existing production lines would be the safest move in these “uncertain times,” according to the company.
Tesla is also cutting prices, as many other electric vehicle makers are doing, amid a clear decline in sales in key markets such as Europe, where the phasing out of subsidies has hit demand for electric vehicles hard. The cut is about $2,000 across all models Tesla currently sells.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
The Tesla article denies having given up on the economical Model 2, but is it true? comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/tesla-smentisce-di-aver-rinunciato-al-modello-2-economico-ma-sara-vero/ on Wed, 24 Apr 2024 16:15:17 +0000.