BY BILL PIERCE

CNBC article:
https://lnkd.in/g8CaMU7c

This is excellent news for us at EVinfo.net, as we have been repeatedly saying delaying the low-cost models further would be a big mistake. The more affordable Teslas will do wonders for EV adoption. Because we passionately promote EV adoption around the world and in the US, we are thrilled to hear this news.

Low-priced EVs have been missing from the very beginning of the EV revolution and kept a very large segment of drivers from going electric.

Chevy's Bolt came close to the low-cost EV the industry needed. But its slow charging at max rate of 55 kW was a fatal mistake. American consumers wouldn't accept it as a true contender. GM shelved the model for 2024, and it is expected to return in 2025 with a competitive max charging rate.

Tesla CEO Elon Musk said on the investor call that the company plans to start production of new models in “early 2025, if not late this year,” after previously expecting to begin in the second half of 2025.

Tesla is aiming to “fully utilize” its current production capacity and to achieve “more than 50% growth over 2023 production” before investing in new manufacturing lines.

Tesla stock jumped 11% in extended trading after Musk told investors that production of new affordable EV models could begin sooner than expected.

Sales growth across EVs is slowing, and Tesla and key rivals have been slashing EV prices to try to spur demand. Tesla’s gross profits plummeted 18% in the first quarter.

Tesla knocked $2,000 off the prices of three of its five models in the United States this week.

The company cut the prices of the Model Y, a small SUV which is Tesla’s most popular model and the top-selling electric vehicle in the U.S., and also of the Models X and S.

The cuts reduced the starting price for a Model Y to $42,990 and to $72,990 for a Model S and $77,990 for a Model X.

The deck also said:

"While many are pulling back on their investments, we are investing in future growth – including our AI infrastructure, production capacity, our Supercharger and service networks and new products infrastructure – with $2.8B of capital expenditures in Q1. We recently undertook a cost-cutting exercise to increase operational efficiency."

"We also remain committed to company-wide cost reduction, including reducing COGS per vehicle. Ultimately, we are focused on profitable growth, including leveraging existing factories and production lines to introduce new and more affordable products. "

With this news, EVinfo.net feels Tesla is on the right track. We want Tesla to be profitable, although we are critical of it and other OEMs at times. We criticize when we believe EV adoption is harmed by company mistakes. What's your opinion?