Electric vehicle (EV) manufacturer Tesla anticipates higher EV sales next year as it begins production of lower-cost models.
Chief executive Elon Musk foresees volume growth increasing by 20-30pc in 2025, barring any force majeure events, he told investors this week on an earnings call for the quarter that ended 30 September.
Musk reaffirmed the Texas-based company was on track to produce more affordable versions of its EVs in the first half of next year after laying out plans to do so initially in April.
High costs have been one of the major roadblocks to widespread EV adoption as internal combustion engine (ICE) vehicles continue to be more affordable. The bulk of the costs associated with production involve the metals used in EV batteries.
Tesla plans to utilize its existing manufacturing lines to turn out the lower-cost models, aiming for EVs priced under $30,000 including government incentives, Musk said. The company reported reduced production costs across each of its manufacturing facilities in the latest quarter.
The company's production recovered in July-September, after it fell the prior two quarters as the company endured slowdowns from shifting output to an updated version of the Model 3 and faced additional logistical and operational challenges. Output in the third quarter increased by 9.1pc from a year earlier to 469,796 vehicles.
Total deliveries in the quarter increased by 6.4pc to 462,890 vehicles, as demand for its new Cybertruck increased. The company also benefited from an improved macroeconomic environment as borrowing costs globally began to decline.
The company's energy storage business deployed 6.9 gigawatt hours (GWh) in the quarter, up from 4GWh in the prior-year period. Tesla plans to boost production of its Megapack and smaller Powerwall products, ramping its Megafactory in Lathrop, California, and progressing with the construction of a new plant in Shanghai.
Quarterly profits increased on the year by 17pc to $2.2bn. Total revenues increased by 7.8pc to $25.2bn in the same timeframe, with automotive sales rising by 1.3pc to $18.8bn.
