Tesla Set to Revamp Market with Affordable EV Models by 2025

Tesla announced plans to launch new, more affordable electric vehicle models by early 2025, following a decrease in its quarterly profit and revenue. The company aims to lower production costs and enhance product offerings to maintain competitiveness in a growing EV market.

Tesla has committed to introducing new, budget-friendly electric vehicle models by the first half of 2025, aiming to fortify its position in the expanding EV market. This announcement came as the company's quarterly profit and revenue did not meet Wall Street's expectations due to discounts and financing offers.

The election of U.S. President Donald Trump, an ally of Tesla's CEO Elon Musk, initially boosted the company's valuation. However, a drop in deliveries last year has increased pressure on Tesla to release a lower-priced model, alongside autonomous vehicles and essential software innovations that Musk argues are vital for its financial future.

Tesla's earnings report highlighted its focus on affordability, citing reductions in the cost of goods sold, which reached historically low levels in the fourth quarter. While this cushioned some financial setbacks, Tesla's use of cheap financing has sparked concerns over profit margins, which are predicted to narrow due to high interest rates.

(With inputs from agencies.)