TESLA BEGINS PRODUCTION OF AFFORDABLE MODEL – The company sees its biggest quarterly revenue drop in 10 years
Tesla started making the “first builds” of its affordable model in June, the electric vehicle maker said, adding that it expects volume production in the second half of this year.
The affordable model is expected to help rekindle falling sales of its ageing lineup as Tesla battles rising competition from cheaper EVs, especially in China, and a persistent backlash against CEO Elon Musk’s far-right political views.
Tesla did not provide an update on its full-year deliveries forecast after pulling its guidance in April, citing broader economic concerns amid tariffs on auto and auto part imports announced by President Donald Trump.
The company reported the steepest decline in quarterly revenue in more than a decade, with a 12% fall, and profit missed Wall Street targets, with the adjusted profit per share of 40 cents lagging the consensus of 43 cents per share, according to data compiled.
Tesla had said in April it would start producing the more affordable model by the end of the first half and sources had told Reuters the vehicle, a stripped-down version of its Model Y SUV, would be delayed by at least months. Tesla on Wednesday did not disclose any details on the model or how many units it had made.
The company said it continued to expect volume production of its custom-built robotaxi – called the Cybercab – and Semi truck in 2026.
