Maybe Tesla Didn't Cancel the Affordable EV After All, Or Did It?

Following Tesla has always been a whiplash-inducing experience. The will they, won’t they themes continue in 2024, as the automaker recently reversed its reported decision to nix affordable EV plans, though the flip appears related to less-than-stellar first-quarter performance.

Tesla’s first-quarter net income dropped a whopping 55 percent to $1.1 billion, and revenue tumbled nine percent. After facing what it said were logistics challenges related to conflicts in the Middle East, protests at its German Gigafactory, and the slow ramp-up of the new Model 3’s production, the automaker’s investors apparently needed a steroid shot.

They got that injection with Tesla’s announcement that it would “Accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025.”

The previously reported cancellation of Tesla’s affordable EV also went out the door, at least on paper. “These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle lineup,” the statement read.

CEO Elon Musk would not elaborate on those future products and didn’t confirm the long-expected $25,000 car. He did note that Tesla would give more detail on its plans when it debuts its robotaxi plans in August.

While it’s worth noting that the automaker and Musk never confirmed the cancellation of the cheap EV, it’s also hard to imagine an accelerated product being good news for anyone. The Cybertruck had almost five years of development before reaching the market, and it’s had one quality issue after another. Just imagine that level of build quality, but it’s rushed.

[Image: Kovop via Shutterstock]

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