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Elon Musk company profits fall record low. — AFP/File

Tesla has announced to introduce a new line of affordable cars by the year 2025, backtracking from its previous plans to produce an all-new model that had been expected to cost $25,000, NPR reported.

News of the “new model” broke, as Tesla’s yearly quarter reports show its profits to have fallen by 55% as compared to last year.

In addition to falling profits, many top Tesla executives are leaving, including the head of investor relations.

The electric vehicle company has also announced to lay off 10% of its global staff.

While defending the company’s performance, Musk and other executives said that the broader challenges in the electric vehicle (EV) industry as well as incidents like the arson attack at Tesla’s Berlin plant have impacted the performance.

However, they emphasised that soon they will come out of this phase and will reign the EV markets.

Tesla, in a statement announcing the new car model, said: “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.”

While explaining the reason, they said: “This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times.”

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