Going into earnings, there were reports Tesla had scrapped, or sidelined, plans to produce its next-generation Model 2, a $25,000 vehicle.
However, Tesla reported that it had updated its "future vehicle lineup to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025."
These new vehicles include "more affordable models," according to Tesla and will "utilize aspects of the next generation platform as well as aspects of our current platforms." Tesla said it could produce these new vehicles on the same manufacturing lines as its current vehicle lineup.
Musk added on the earnings call that the new model line will come early in 2025 "if not late this year."
Executives refused to go into further detail about the company's low-cost vehicle plans.
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote Wednesday it appears that Tesla is going with a "Model 2.5" instead of a Model 2.
"While it's not a next generation Model 2 platform, we believe this is the right strategy and move at the right time," Ives wrote.
