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Tesla Announces New Affordable Model
Tesla (NASDAQ: TSLA) reported that the first builds of a new, more affordable model began in June 2023, with volume production expected in the second half of 2025. The company aims to expand its market presence, potentially offering this model at around $30,000, significantly lower than the current starting price of approximately $45,000 for the Model Y.
During its second-quarter earnings call, CEO Elon Musk indicated that this new vehicle may be a simplified version of the Model Y, possibly with a smaller battery. This launch could drive growth similar to the Model 3, which saw deliveries increase from 76,000 in 2016 to nearly 500,000 by 2020, laying the groundwork for Tesla’s 1.8 million deliveries in 2023.
While the new model is not expected to create a drastic shift alone, it could enhance Tesla’s affordability in a competitive electric vehicle market and support its autonomy goals, aligning with the company’s strategy to integrate AI and software into its future offerings.
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