Manufacturer News Tesla is preparing to launch “more affordable models” in the first half of this year as it looks to ramp up competition with price pressure from new entrants to the electric vehicle (EV) market. For the first time, Tesla reported a year-over-year decline in vehicle deliveries in 2024, hitting 1.78 million - 19,000 fewer than the previous year, as concerns mounted around the company's ability to maintain its leadership position within the increasingly competitive electric vehicle (EV) sector. The new cars are intended to boost Tesla's annual output by more than 60% to around three million cars. In its latest quarterly update, the carmaker said that “plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.” It explained that these new, more affordable vehicles will use aspects of the next generation platform as well as aspects of our current Model 3 and Model Y platforms, and will be produced on the same manufacturing lines as its current vehicle line-up. “This approach will result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” it said. “This should help us fully utilise our current expected maximum capacity of close to three million vehicles, enabling more than 60% growth over 2024 production before investing in new manufacturing lines.” There had been suggestions the EV manufacturer had decided against bringing an entry-level, low-cost Tesla to market, favouring the development of its self-driving “Cyber Taxi" (pictured) instead. Elon Musk has previously indicated that Tesla, which he co-founded in 2003, aimed to bring a car to market for less than £20,000 ($25,000). There has been speculation that there could be a new Model Q that would be a compact EV, like a smaller version hatch of the Model Y, that would be priced below £24,000. Tesla revealed an updated version of the Model Y, featuring a new-look front end which takes inspiration from Tesla's Cybertruck.