tesla is gearing up for a meaningful shift, with plans for more affordable electric vehicles (EVs) and ambitious advancements in robotics. During a recent earnings call, CEO Elon Musk revealed that Tesla has begun production on a more budget-kind EV, a smaller version of the popular Model Y. This move comes at a crucial time, as the federal EV tax credit is set to expire in September, potentially making EVs considerably more expensive.
The current entry-level Tesla, the Model 3 sedan, starts at $42,490, while the cheapest EV on the market for 2025 is the Nissan Leaf at $29,280.The introduction of a smaller, more affordable Model Y, expected by the fourth quarter of 2025, could significantly impact the market, especially given the limited availability of competitive EVs priced under $40,000.
Beyond its automotive endeavors, Tesla is making significant progress in the realm of robotics. Musk expressed confidence in the progress of Optimus,Tesla’s humanoid robot,stating that the Optimus 3 design possesses all the necessary degrees of freedom. He even projected a staggering production target of “roughly 100,000 Optimus robots a month,” expressing surprise if thay don’t reach that figure. This highlights Musk’s vision for Tesla to transcend its identity as solely an automaker, venturing into robotics, autonomous driving, and charging infrastructure.In fact, Musk has previously suggested that the tesla Optimus robot could eventually outsell the company’s cars.
The company is currently navigating a period of adaptation and transformation. Following a substantial drop in revenue, Tesla is adjusting to an increasingly competitive EV landscape. With rivals like GM and Hyundai offering compelling alternatives, Tesla is no longer the sole dominant player. Investors are closely watching as the company pivots to address current challenges in its car business and focuses on future innovations.
The earnings call also touched upon Tesla’s Robotaxi initiative.While details on how Tesla owners can participate remain scarce, the concept of a vehicle generating income is a novel prospect. Despite seeming far-fetched, Tesla’s advancements in semi-autonomous driving suggest the company’s capability to produce fully autonomous EVs.