Production will start in the second half of 2025
Tesla plans to begin production of the next-generation electric vehicle at its Texas plant in the second half of 2025, CEO Elon Musk said after warning of a sharp slowdown in sales growth this year.
Tesla shares fell 6% in after-hours trading as Musk noted that ramping up production of the new car would be a challenge. Musk said that this will require «a huge number of new revolutionary manufacturing technologies».
«I am often optimistic about deadlines. But our current schedule shows that we will begin production towards the end of 2025, sometime in the second half», — Musk said during a press conference.
«We will practically sleep on the production line», — he said, referring to Tesla's plant in Texas, where the new model will be produced for the first time. That will be followed by Mexico and another plant outside North America, which will be decided later this year, he said.
The electric vehicle maker also warned of «noticeably lower» sales growth this year as it focused on a new vehicle after reporting a contraction in fourth-quarter gross profit.
Tesla said it is between two waves of growth: one driven by the release of the Model 3 and Y models in 2017 and 2020, respectively, and a second wave that will begin with its next-generation vehicle platform.
In addition, Musk stated that Chinese automakers will achieve significant success outside of China: «If trade barriers are not put in place, they will largely destroy most other auto companies in the world».