Elon Musk’s Tesla has posted significant third-quarter earnings growth, marking a turnaround from earlier struggles this year, while announcing major strategic shifts in its future vehicle lineup and autonomous driving initiatives.that Elon Musk’s car company reported a net income of $2.2 billion for the third quarter, representing a 17 percent increase compared to the same period last year.
In a significant strategic pivot, CEO Elon Musk revealed that Tesla has abandoned its previously announced plans for a $25,000 electric vehicle. Instead, the company will introduce lower-cost versions of existing models, priced below $30,000 after subsidies, scheduled for release in the first half of 2025. Following these releases, Tesla plans to focus on developing a dedicated robotaxi without traditional vehicle controls such as a steering wheel or pedals.
Notable progress was reported with the Cybertruck, which achieved a positive gross margin for the first time since its November launch. Looking ahead, Tesla has committed to capital expenditures exceeding $10 billion this year, primarily focused on data center expansion and software improvements crucial to its autonomous driving aspirations.
Tesla’s immediate plans include the release of an enhanced version of its Full Self-Driving technology next year, initially deployed on a test fleet before wider customer availability. The company also intends to launch its paid ride-hailing application in the coming year.
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