It was widely reported that the “affordable” Tesla EV, rumoured to be called Model 2, was cancelled as the American EV maker pivots into making the Cybercab. As it turns out, that wasn’t exactly true, because Tesla in its third quarter earnings report has just reaffirmed its plan to launch a “more affordable” model in the first half of 2025.
“In order to continue accelerating the world’s transition to sustainable energy, we need to make EVs affordable for everyone, including making total cost of ownership per mile competitive with all forms of transportation,” the company said in the report. “Preparations remain underway for our offering of new vehicles – including more affordable models – which we will begin launching in the first half of 2025.”
Tesla reportedly killed its previously-planned affordable EV earlier this year, as the company attempts to pivot into autonomous vehicles and robotics. But after backlash from its investors, Tesla CEO Elon Musk has since recommitted to their original plan – although like the Cybercab autonomous ride-hailing project, specifics about the so-called “Model 2” still remain unclear.
The company announced a USD2.2 billion (approx. RM9.6 billion) net income on a revenue of USD25.2 billion (approx. RM110 billion) in the third quarter of 2024. That represents a 7% increase year-on-year compared to the same quarter last year, and a 17% increase in net income.
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Gross margins have recovered slightly too from their lowest point in six years earlier this year, to 19.8% in Q3 2024, although it has to be said that a large part of its revenue comes from selling its regulatory credits to other companies. In the report, “total automotive revenues” has only grown by 2% year-on-year.
Nevertheless, vehicle delivery has indeed gone up to 462,890 units during the quarter, a 6% jump from the same period last year. The company has also produced its seven millionth vehicle just two days ago, and boasts that the Cybertruck has become the third best-selling EV in the US, after the Model Y and Model 3 – but the latter two still accounts for 94% of all Tesla sales.
At least, the pickup has reached “positive gross margins for the first time”… We’re just not too sure it has garnered positive response from the mass market just yet.
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