Is Tesla's price reduction a part of Musk's new strategy?

The American corporation, Tesla, has released a financial report for 2024, revealing a significant decrease in profits. However, the company also announced the imminent release of several new and affordable electric vehicle models. This could be a major turning point for the industry and the market as a whole.

Profits are declining, but the company remains ambitious.

According to recent data, Tesla's net profit has decreased by half compared to last year, amounting to $7.1 billion. Sales revenue from electric vehicles has also decreased by 6%, and operating profit has fallen by 20%.

This is due to several factors, including a slowdown in sales growth, increased competition, and investments in new models. Additionally, lower prices for Tesla's electric cars in order to maintain demand have also affected the company's financial performance.

Cheap electric cars - a bet on mass market

Despite a decline in profits, Tesla is not giving up. The company plans to launch new, low-cost electric vehicles in the first half of 2025. According to preliminary data, their price will start at $30,000. This move aims to expand the customer base and compete with Chinese manufacturers like BYD and Nio, which are gaining popularity. More affordable Tesla models could attract people who previously couldn't afford an electric vehicle from the American brand.

The future of Tesla: A challenging but promising journey

Elon Musk's company has been betting on the mass market and continues to expand production, despite facing financial challenges. The introduction of new models could help Tesla offset declining profits and solidify its position in the electric vehicle market.

However, whether Tesla can maintain profitability with lower prices remains to be seen. We'll find out in the coming years.

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