Tesla reported its first-quarter earnings on Tuesday, missing Wall Street consensus estimates for both earnings per share and revenue.”
While warning that the rapidly evolving trading policy and the “changing political sentiment could have a meaningful impact on demand for our products in the near-term,” Tesla reaffirmed its targets for both Cybercab and the affordable model.
“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025,” the company stated in its quarterly shareholder deck.
As of the time of writing, Tesla’s quarterly earnings call has not yet started. There, CEO Elon Musk is expected to provide further details on the timeline for new vehicles.
The new vehicles will combine elements of Tesla’s next-generation platform with features of the current platforms, with the company stating they ‘will be produced on the same manufacturing lines as our current vehicle lineup.’
“Tesla expects the change will result in ‘less cost reduction than previously expected,’ but will allow the company to prudently ‘grow our vehicle volumes in a more capex-efficient manner during uncertain times.’”
“This should help us fully utilize our current expected maximum capacity of close to three million vehicles, enabling more than 60% growth over 2024 production before investing in new manufacturing lines,” the Elon Musk-led company stated.
Reuters reported in March that Tesla‘s affordable model plans included a “stripped-down version of its best-selling electric SUV, the Model Y.”
The model, “internally codenamed E41,” is expected to be “smaller and cost 20% less to produce than the refreshed Model Y.” Last week, the outlet added that “the production launch has been delayed” and that “aimed to produce 250,000 of the cheaper Model Ys in the United States in 2026.”
During the weekend, Reuters also revealed that the Cybercab production would suffer delays, as the company’s “plans to ship components from China […] were suspended” due to the raised tariffs on imported Chinese goods.
According to the report, “Tesla was ready to absorb the additional costs when Trump imposed the 34% tariff on Chinese goods but could not do so when the tariff went beyond that, leaving shipping plans suspended.”
Cybercab
Commenting on the Cybercab production, Tesla said the model is “scheduled for volume production” from next year.
“Our purpose-built Robotaxi product – Cybercab – will continue to pursue a revolutionary “unboxed” manufacturing strategy and is scheduled for volume production starting in 2026.”
A recent Business Insider report claimed Tesla reduced Cybertruck production and trimmed its teams by more than half reallocating staff to Model Y production lines.
As of the time of writing, Tesla shares are trading 1% at $240.
