WionDrive News Desk 
Tesla CEO Elon Musk’s latest plan to use current product lines for the production of low cost vehicles rather than create new models from scratch is viewed by some investors and analysts as resembling approach deliberated by Ford and General Motors ,i.e. traditional Detroit automakers.
This transition to gradual evolution, similar to the strategies used by legacy car manufacturers, shows that the future of car manufacturing, that Musk promised would be a totally new look of revising, may ultimately keep some old traditional practices as well.
However, the scope of Musk’s new approach was revealed in a Reuters report, stating that Tesla delayed the introduction of a well anticipated new model priced at USD 25,000 until late 2025. Tesla’s investors expected that this inexpensive car, which was code-named as the Model 2, would mark the transition of the company to a mass production facility.
On the other hand, the recent statement by Tesla to utilise the established foundations and production lines to present the so called ‘more affordable’ models by early next year does not have a specific price tag or additional details attached.
Achieving the announcement caused an upward spike in Tesla’s stock price that the investors celebrated. According to some analysts, the company is likely to introduce models with relatively fewer features, like the current Model 3 and Y, which is approximately USD 39,000 and USD 43,000 in price. “This mirrors the strategy we have seen often from the traditional automakers made recently,” remarked Sandeep Rao, a researcher with Leverage Shares, which is a USD 500 million total assets investment management firm that invest in Tesla and other EV manufacturers.
“Or as the Golf Highline has a basic version that is the same price as the VW Golf, and you could get the pricier GT version which costs more than about 25%,” he said. According to King Lip, chief strategic officer at BakerAvenue Wealth Management, which owns positions in Tesla even though they are quite small, “If it launches, that’s gonna be one of the most popular vehicles of the company.”
Tesla made clear that this adjustment was going to give them the green light for releasing cheap cars, which however would be scaled down with respect to the projected cost diminution and volume increase compared to the previous forecasts.
