Tesla is back to promising a more affordable EV after reportedly canceling plans for a rumored $25,000 vehicle earlier this year.
The company said in its third-quarter earnings report that customers should expect “more affordable models” to launch 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 wrote. “Preparations remain underway for our offering of new vehicles – including more affordable models – which we will begin launching in the first half of 2025.”
It’s unclear from the report whether the company will introduce a new affordable model or merely a cheaper version of its Model 3. Tesla did not immediately respond to Fortune’s request for comment.
The move comes after Tesla in April reportedly scrapped its plan for an affordable EV, dubbed the Model 2, which was meant to position the company for mass-market appeal. Tesla’s cheapest vehicle, the Model 3, sells for about $39,000.
Building an EV for the masses has been a part of CEO Elon Musk’s vision for nearly a decade, and he has repeatedly promised it to investors. In Musk’s original “secret master plan” from 2006, he imagined first building an expensive sports car EV, using the profits to build a more affordable vehicle, and then “an even more affordable car” later.
After shelving its plans for an affordable EV in April, Musk pivoted the company to focus on robotaxis. Earlier this month, the company unveiled its first Cybercab and a Robovan meant for bigger groups. While some analysts were unimpressed by the scant details Musk offered during the announcement, the CEO said on the company’s earnings call Wednesday that its robotaxis are already being tested with employees on San Francisco roads.
“With the development app, you can request a ride, and it’ll take you anywhere in the Bay Area,” he said.
Tesla blew away expectations in its third quarter with higher deliveries that helped deliver better-than-expected profit of $2.17 billion, up 17.3% from a year ago. Musk also guided toward 20% or 30% growth next year, which helped Tesla stock skyrocket more than 20% to $258 per share as of Thursday afternoon.
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