Tesla continues to inspire dreams with the promise of making electric cars accessible to as many people as possible. During the publication of its quarterly results on Wednesday evening, the manufacturer reiterated its intention to launch more affordable models from 2025. An announcement which arouses as much hope as skepticism, as Tesla has accustomed us to postponing its most ambitious projects . But beyond the announcement effects, what should we remember from this new financial report?
Strong financial results despite challenges
Despite some headwinds in recent months, Tesla posted robust results for its third quarter of 2024. The manufacturer saw its net profit increase by 8% to reach $2.51 billion. Its turnover also increased by 2% compared to the same period last year.
Performances which put an end to a series of four consecutive quarters where Tesla had missed its financial objectives. And this despite challenges like the fifth recall of the Cybertruck or the federal investigation into its autonomous driving function.
The promise of “more affordable” models for 2025
But what caught most of the attention was Tesla’s renewed commitment to launching more affordable electric vehicles. In its report, the manufacturer indicates that preparations are “on track” for a start of production in the first half of 2025.
Tesla highlights the drop in its manufacturing costs, with unit costs falling to $35,100, “its historic lowest level”. Enough to pave the way for models offered at more attractive prices in the face of increasingly pressing Chinese competition, notably the BYD brand which has recently arrived in Europe.
These future vehicles will incorporate elements of Tesla’s current platforms as well as its next generation platform. A pragmatic choice which will allow them to be produced on the same lines as the existing range.
No details on these future models
Tesla, however, remains evasive on the exact timetable and characteristics of these famous “more affordable” models. The report only indicates that the manufacturer intends to “start launching them” in the first half of 2025. A wording that is sufficiently vague to not guarantee effective marketing from next year. It is also unclear whether these will be completely new models or simply cheaper versions of the Model 3 and Model Y.
The highly anticipated “Model 2” project at $25,000 seems in any case definitively buried. Elon Musk now prefers to focus on his futuristic Robotaxi and the integration of artificial intelligence.
However, the high price of entry remains the main obstacle to the mass adoption of Tesla vehicles. Despite attractive leasing offers, the Model 3, its cheapest model, starts at $42,490 excluding subsidies. As for the average starting price of the 2024 Tesla model, it exceeds $63,000 according to the Kelley Blue Book.
Offering more accessible models would allow Tesla to attract new customers and break its brand image reserved for an elite. This could also convince some skeptics who consider Teslas too expensive. But for now, it’s difficult to plan without more concrete details. Tesla has accustomed us to promising revolutionary innovations which are then slow to materialize. We will therefore have to closely monitor its next announcements to see if these promises of affordable models finally turn into reality.
