One of Tesla’s biggest drawbacks has always been the initial cost of its electric and gasoline models. The company’s cheapest car currently sells for $42,490 before subsidies, and the average starting price for a 2024 Kelley Blue Book is just over $63,000.
Tesla said in its third-quarter disclosure report that it is “preparing” to offer new cars with “more affordable models.” The company’s EV maker’s cost of goods per vehicle also fell to a “record low” of $35,100.
“Plans for new vehicles, including more affordable models, are on track to begin production in the first half of 2025,” the report said. “These vehicles utilize aspects of our current platforms as well as next-generation platforms and will be able to be produced on the same manufacturing lines as our current vehicle lineup.”
Tesla also said it plans to “begin rolling out” cheaper EV models in “the first half of 2025.” This wording is still quite loose, so there is no guarantee that new models will ship in the same year.
Another surprise in Tesla’s report came from its numbers. Despite setbacks like the fifth Cybertruck recall and a federal investigation into the EV’s fully self-driving features, Tesla’s third quarter turned out to be quite strong. The automaker’s net profit rose 8% to $2.51 billion, and sales rose 2% from the same period last year. The news also ends four consecutive quarters of missing revenue targets.
