Tesla accelerates the production of affordable electric cars, the share price rises by 12% – WN24.cz – World News 24

Tesla’s ambitions to launch more affordable electric cars appear to be progressing, as indicated by a 12% rise in the company’s share price on Tuesday. This comes after it was announced that the carmaker is speeding up production of its cheaper electric cars, with the first cars expected to roll off the production line as early as this year.

Tesla CEO Elon Musk provided more information about the company’s plans during a call with investors. He said these new models are likely to include more affordable vehicles, which could start production in early 2025, if not later this year, the Guardian newspaper reports.

However, the company remains tight-lipped about the design and specifications of these new cars. Tesla has previously hinted at producing an unnamed vehicle, often referred to as the Model 2, that would sell for $25,000 or less. However, recent reports suggest that these plans have been abandoned.

When asked about the nature of the new vehicles, Musk did not comment, leaving it unclear whether they would be completely new models or modifications of existing ones.

To speed up production of these more affordable vehicles, Tesla appears to be deviating from its original Model 2 plan. The company intended to implement its “Unboxed” manufacturing process, in which the various parts of the car would be assembled simultaneously in large sub-assembly groups, and at the end were connected. This approach was expected to cut production costs in half, but would require significant investment in preparing the factories.

However, Tuesday’s announcement suggests that the new vehicles will be produced on existing assembly lines.

Tesla design chief Lars Moravy said the company would avoid the risk of investing in a “revolutionary” manufacturing process.

The move led some industry observers to believe that the Model 2 plan had been shelved entirely. Sam Abuelsamid, an analyst at Guidehouse Insights, commented: “Since we don’t feel like spending billions on new manufacturing plants or rebuilding existing factories, it looks like we’ll see Tesla continue to make current products.”

Elon Musk has promised more details about new electric car models on August 8.