What Happened: Sam Korus, Ark’s Director of Research Autonomous Technology & Robotics, highlighted the planned launch of Tesla’s low-cost, next-generation platform by the end of 2025. According to Korus, this move could potentially expand Tesla’s addressable market tenfold.

Korus pointed out that despite the Model Y EV’s sticker price in the low $40,000s, it became the best-selling vehicle globally in 2023, with sales reaching 1.2 million units. He noted that within the $40,000+ price range, only 5% of the auto market is accessible, but a $25,000 price point could increase the total addressable market to 50%.

Source: Ark

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Other Tesla investors, including Future Fund’s Gary Black, have also underlined the need for a low-end vehicle to lift Tesla’s sales volume. Potter on Monday lowered his 2024 volume estimate from 2.18 million units to 1.93 million units, marking a mere 7% year-over-year increase.

Amid Tesla’s stock slump, Black said providing updates on the progress of the next-gen $25,000 EV in the runup to the 2025 launch is among the factors that can help recovery in stock prices over the next six to 12 months.

In premarket trading on Tuesday, Tesla stock fell 2.35% to $176.81, according to Benzinga Pro data.

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