Copyright © BusinessAMBE 2023

Not in the second half of 2025, but possibly as early as the end of this year: Tesla is accelerating the launch of a low-cost model (price tag about 23,000 euros) in an effort to rekindle slumping demand after another disappointing quarter.

Tesla wants to become more competitive in the growing market of affordable electric vehicles. With the introduction of this model, Tesla is positioning itself as a direct competitor to established car brands and new entrants, such as China's BYD, in a sector where price is a critical factor.

In related news: Top executive Elon Musk stated when commenting on quarterly earnings that Tesla's long-awaited compact model, previously codenamed Redwood, will go into production "in early 2025, if not as early as the end of this year." That's at least six months earlier than the timing the company had previously announced, for late 2025.

The context: Tesla shares have been under significant pressure on the stock market this year, dropping from about $248 at the beginning of the year to about $144, or a drop of more than 40 percent. The just-released quarterly figures are also disappointing.

  • Revenue was $21.3 billion in the first quarter. That's $2 billion lower than a year earlier and $1 billion below average analyst expectations.
  • Earnings per share came in at $0.34, down from $0.85 a year earlier. Analysts on average were counting on $0.49.

Stock market reaction: The stock price shot up 13 percent in limited indicative trading after-hours, to some $164. It remains to be seen if the stock can hold that when regular stock market trading starts this afternoon.

© The Content Exchange, source News