While the price point for an "affordable" Tesla hasn't been revealed, Musk has long talked about an affordable EV for around $25,000, which would be roughly half the price of the current Tesla Model Y. The company may be hoping that a cheaper Tesla would help the company boost sales during a difficult time period.

Tesla has reportedly delayed the launch of new low-cost model by months, pushing the vehicle's mass production to late 2025 at the earliest.

Tesla, Inc. TSLA has delayed the launch of its long-anticipated affordable vehicle, which is a stripped-down version of its popular Model Y SUV, in the United States. The company previously pledged to release lower-cost cars in the first half of the year,