Tesla CEO Elon Musk is planning to release affordable electric vehicles again by 2025 as the automaker struggles to get over its sales slump.

In a conference call with analysts on Tuesday, Musk claimed that production of much cheaper EVs would begin sometime in the second half of next year "if not late this year."

According to Musk, the next-generation vehicles will blend "aspects" from Tesla's top-sellers Model 3 and Model Y.

The cheaper prices are also guaranteed as the production of the cars will not be "contingent on a new factory or massive new production lines."

This means that there would be less resources needed to build the cars than Tesla's other flagship EVs.

Musk's statement was first reported by Electrek.

The announcement came just weeks after several news outlets reported that Tesla is canceling plans to bring down prices of its Model 2 cars after a failed attempt to debut at the robotaxi business.

Also Read: Tesla EV Sales Drop Amid Increasing Competitive US Market

Tesla Struggles to Keep Sales Growth in Steeper EV Market

While experts agree that the rollout of cheaper Tesla vehicles will help the company in the long run, it also means that the automaker is sacrificing higher profits in the next one or two years.

Tesla has been reported to be facing financial troubles since the last half of 2023 following a slowdown in sales brought by production and delivery delays across its global factories.

Add that to the uncertainties in the EV market as the US government slows down its push to shift the country's vehicles to zero carbon emission cars by 30% in 2030, making it more difficult for the car dealer to reach more customers.

So far, Al Jazeera has noted a 55% drop in Tesla's profits compared to last year's records as more automakers roll out cheaper and less dangerous vehicles.

The revenue cuts have since forced the company to eliminate over 10% of its global workforce, shifting operations towards cost-cutting measures.

Related Article: Tesla to Cut Down Global Workforce by 10% as Sales Slow Down

Stagnating EV Sales Hit Major EV Manufacturers

Although the sales slowdown is most evident in Tesla, other EV automakers were also not as lucky as they were in the previous years.

Ford, General Motors, and Hyundai have also taken a hit in their profits as production delays and market uncertainties dampen their profits and shares.

Many of the affected car dealers, including Rivian, have rolled out price cuts to attract more potential buyers, particularly in foreign markets more accepting of EVs.