Tesla's Next Chapter: Affordable EVs and Autonomous Future

Tesla is set to introduce new, affordable electric vehicle models by 2025, despite missing Wall Street's profit and revenue benchmarks. The company aims to reduce costs amid competition and high borrowing rates. Progress on autonomous vehicles continues, with a robotaxi expected by 2026.

Tesla announced plans to launch cheaper electric vehicle models in the first half of 2025, although its recent quarterly profit and revenue did not meet Wall Street's expectations, primarily due to discounts and financing deals. Despite the financial dip, Tesla's market value remains high, bolstered by U.S. President Donald Trump's election, a known ally of CEO Elon Musk.

The company is under pressure to deliver more affordable models, as well as autonomous vehicles, which Musk believes are vital to Tesla's financial future. Shares rose 2.7% after Tesla committed to cost-cutting and development of new vehicles, with the cost of goods at an all-time low of less than $35,000 in the fourth quarter, aided by reduced raw material expenses.

Tesla continues to make strides in autonomous driving technology, with plans for a self-driving Cybercab by 2026. Meanwhile, Tesla's profit margins from vehicle sales dropped, impacted by higher interest rates and stiff competition. Despite these challenges, Tesla has not disclosed details like pricing or features of the upcoming models but anticipates a return to business growth this year.

(With inputs from agencies.)