Tesla Said It Will Cut Costs of Next-Gen Cars in Half, but Then Its Shares Fell 5%

Tesla just confirmed it will be adding a more affordable model to its current EV lineup. Though, investors didn’t get the big reveal they were looking for.

According to CEO Elon Musk, the marque has mapped out a way to slash the price of its next generation of vehicles in half. Musk, along with additional executives, gave the details of the company’s Master Plan 3 during an investor day live stream in Austin, Texas on Wednesday. The presentation mentioned using innovative manufacturing techniques and smaller factories to cut the cost of new-gen cars to $25,000. Tesla design leader, Franz von Holzhausen, and vice president of vehicle engineering, Lars Moravy, further demonstrated the changes that will hopefully improve the efficiency of Tesla’s production.

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The EV maker didn’t actually reveal the car during the three-hour broadcast. Execs also remained short on the specifics, including the timeline for the highly anticipated prototype, what it’s going to look like and how it will perform. “We will have a proper sort of product event, but it would be jumping the gun if we answer your questions now,” Musk told an analyst.

Shortly after the event, which ended around 8 pm, Tesla’s stock fell more than 5 percent in after-hours trading, according to the Associated Press. Investors who were hoping for the curtain to be pulled back on the marque’s next-generation platform walked away still in the dark as to when the $25,000 car will be on the road. The intent is to build them at the company’s Mexican assembly plant, a project that was also introduced in Tesla’s Master Plan 3.

“Probably the most exciting announcement of the day is that we’re going to be building a gigafactory in Mexico,” Musk added. While we do know that factory will be based near the city of Monterrey in Nuevo León, similar to the automaker’s new vehicle platform, there is no timeline for the when it’ll actually come to fruition.

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