Tesla will speed up production of cheaper electric vehicles

Pop star Katy Perry posted this selfie of her new Tesla Cybertruck on X (formerly Twitter) on Tuesday. Tesla CEO Elon Musk responded: “Looks good.” Photo: twitter.com/katyperry/

Tesla is accelerating plans to produce a range of cheaper cars as Elon Musk's electric car maker tries to fight a wave of Chinese manufacturers offering cut prices.

The company said it would «accelerate launching new models…including more affordable models» as production begins next year.

Tesla shares rose more than 5% in after-hours trading despite the company'smost the biggest drop in sales in more than a decade.

Investors had been waiting for news of a cheaper electric car, which Musk suggested could cost around $25,000 (£21,500), but expressed concern that instead its focus is on autonomous «robotaxi.»

Tesla said on Tuesday [last night]: «We have updated our future vehicle lineup to accelerate the launch of new models ahead of previously announced models.» production begins in the second half of 2025.

“These new vehicles, including more affordable models, will use aspects of the next generation [production] platform as well as aspects of our current platforms, and can be produced in the same production facilities same lines as our current vehicle lineup.

“This update may result in smaller cost savings than previously expected, but will allow us to intelligently increase our vehicle volumes… in uncertain times. «.