--- title: "As Tesla Profits Fall, Elon Musk Says Tesla Will Make a Cheaper Car After All" description: "Tesla CEO Elon Musk assured investors that his EV maker is now accelerating the launch of new models, which are based on the old platform." date: "2024-04-24" modified: "2024-04-24" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/elon-musk-tesla-make-cheaper-car" categories: - "Advanced Transport" - "Elon Musk" - "Future Society" - "Tesla" - "The Industrialists" tags: - "elon musk" - "evs" - "tesla" --- # As Tesla Profits Fall, Elon Musk Says Tesla Will Make a Cheaper Car After All ![Tesla CEO Elon Musk assured investors that his EV maker is now accelerating the launch of new models, which are based on the old platform.]() *\Image: Getty / Futurism\* Here's how horrendous things are for Tesla right now: On an earnings call on Tuesday, the extent of [the carmaker's "nightmare" year]() was laid bare, as they revealed net income to be down 55 percent this quarter compared to the same period last year. Revenue also fell nine percent. In a desperate bid to stop the bleeding, Tesla CEO Elon Musk reneged on his promise to bring a more affordable EV to market yet again. Earlier this month, [*Reuters* reported]() that the company was looking to pivot to self-driving [robotaxis instead](), an eyebrow-raising shift in priorities. At first, Musk accused *Reuters* of "[lying]()" without elaborating further — only to [admit]() that the reports were right all along, announcing that the company's robotaxi reveal was just four months away. Now, the mercurial CEO has seemingly changed his mind once again, assuring investors that his EV maker is now accelerating the launch of new models — a plan far less ambitious than originally thought, and one that highlights the sheer chaos going on behind the scenes. Instead of focusing its efforts on a fresh, next-generation Model 2 — which purportedly will [cost a mere $25,000](), if it ever goes on sale — the company is aiming for something more mundane: cheaper models, based on the company's existing platform. "These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up," the company wrote in a [shareholder release](). The company, however, hasn't given up on its purported "robotaxi," with Musk sheepishly coming up with a nickname for the autonomous vehicle: the "Cybercab," a play on the company's [(much-maligned) Cybertruck](). Investors seemingly took the news in stride, with Tesla shares rising [more than ten percent in after-hours trading](). That's despite growing concerns over Chinese EV makers flooding the market and undercutting the luxury carmaker with cheaper alternatives, to say nothing of a slowing overall demand for EVs. Meanwhile, Tesla is in dire straits, with the company [firing over ten percent of its staff]() and [several key executives resigning](). Tesla is quickly running out of cash and has spent roughly $2.5 billion in AI infrastructure alone. At the same time, Musk [has been hellbent]() on gifting himself a previously thrown-out $56 billion pay package, with the company going as far as to [launch an entire website]() exclusively designed to convince other shareholders of the plan. Musk's [bizarre political outbursts]() have [also alienated Tesla's core buyers](), as recent data by market research company Strategic Vision has shown. Now, by doubling down on the company's controversial driver assistance software, Musk is drawing lines in the sand. "If somebody doesn’t believe Tesla is going to solve autonomy, I think they should not be an investor in the company," he told investors during Tuesday's call. "We’re putting the actual 'auto' in automobile." Whether that approach will pay off, especially in the short run, remains to be seen. **More on Tesla:** *[Tesla Driver Charged With Vehicular Homicide for Killing Motorcyclist While Browsing His Phone on Autopilot]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()