Elon Musk's recent unveiling of a robotaxi has garnered attention, but investors are primarily focused on Tesla's plans for a $25,000 electric vehicle (EV). Ahead of the company's third-quarter earnings call on October 23, retail investors submitted questions for Musk and executives, emphasizing the need for details on the affordable model.
The top-voted question, receiving nearly 5,000 votes from holders of approximately 2.2 million Tesla shares, inquired about the timeline for the affordable model's delivery. Investors are eager to know if Tesla remains on track to launch the vehicle next year and how it fits within the company's AI and product roadmap.
Concerns over the affordable EV have persisted, with Musk previously stating in April that plans to build cheaper cars were accelerating. He mentioned that production could commence in early 2025, but details have been scarce since then. The absence of the affordable EV in the recent robotaxi presentation disappointed some analysts, contributing to a decline in Tesla's stock.
While Musk has shifted focus towards AI and autonomy, Tesla's core business remains car sales, which account for the majority of its revenue. The company faces increasing competition from rivals offering lower-priced EVs, particularly from Chinese manufacturers. BYD, which briefly surpassed Tesla as the largest EV producer in 2023, offers models priced under $10,000 in China, intensifying the competitive landscape.