Announcement made by Reuters discouraged investors, who expected sales growth of the company’s cars

Tesla, owned by billionaire Elon Musk, discarded the idea of ​​producing affordable cars. The information, released this Friday (April 5, 2024) by the news agency Reutersis a break in expectations for investors, who were counting on the automaker’s increase in sales.

The company’s shares fell 6% after the revelation, but rose again when the businessman announced on X, the social network of which he is also CEO, a new model of Robotaxi. Musk also stated that Reuters was lying, which was denied by the agency.

Tesla’s cheapest car model is valued at $39,000, while the promised affordable car would cost $25,000. The biggest challenge facing Musk is competing with Chinese EV companies, such as BYD and Xiaomi, which started sales of its first electric car on Wednesday (April 3).

Tesla’s goal, according to Musk, is to sell 20 million vehicles by 2030. To date, the company has produced 6 million cars.

Investment in India

Tesla is set to study sites in India for a proposed electric car factory, focusing on Indian states that have automotive hubs, such as Maharashtra, Gujarat and Tamil Nadu.

A move to the world’s most populous country would come at an opportune time, as demand for electric vehicles is declining in its main markets, the US and China, as competition increases.


Leave a Reply