Still, Tesla needs a less-expensive model, as more affordable options are coming from a number of competitors. The least-expensive Tesla, the Model 3, starts at $42,490 before a $7,500 federal tax credit, according to Tesla’s website. Yet Tesla CEO Elon Musk remains confident, and looking at the competition, he has reason to remain so.

Tesla said it was on track to roll out new, cheaper electric vehicle models in the first half of 2025, as its quarterly profit and revenue fell short of Wall Street expectations on Wednesday due to discounts and financing offers.

Tesla’s new EVs will use parts from existing platforms and aspects of the next-gen platform. Prices haven’t been confirmed but will likely sit around $30,000, undercutting the 3 and Y. In June, Tesla will launch a paid self-driving service in Austin and could expand it to other cities.