Tesla starts production of more affordable models

24/7/2025 6:10

Tesla says it has started

production of a more affordable model and expects volume

production in the second half of the year.



The company reported the steepest decline in quarterly

revenue in more than a decade, with a 12% fall, as it battles

strong competition from cheaper electric vehicles and a backlash

against CEO Elon Musk's political views.



Revenue fell to $22.5 billion for the April-June

quarter from $25.50 billion a year earlier. Analysts on average

were expecting revenue of $22.74 billion, according to data

compiled by LSEG.



The company reported a second straight quarterly revenue

drop despite rolling out a much-awaited refreshed version of its

best-selling Model Y SUV that investors had hoped would rekindle

demand.



Much of the company's trillion dollar valuation hangs on

its bet on its robotaxi service - a small trial of which was

started in Austin, Texas, last month - and developing humanoid

robots.



However, investors are worried about whether Musk will

be able to give enough time and attention to Tesla after he

locked horns with President Donald Trump by forming a new

political party this month. He had promised weeks earlier that

he would cut back on government work and focus on his

companies.



A series of high-profile executive exits, including a

longtime Elon Musk confidant who oversaw sales and manufacturing

in North America and Europe and left Tesla last month, is also

adding to the concerns.