Tesla drops plan for new models of affordable cars

It will now use current product lines as the basis for cheaper electric vehicles

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Mr Elon Musk's new plan to use current product lines as the basis for new affordable vehicles rather than springing for all-new models - follows the playbook of Tesla's oldschool Detroit rivals, as some Tesla investors and analysts see it.

The shift towards incremental improvement, mirroring a common strategy of Ford and General Motors, suggests the future of car making that Mr Musk has promised to disrupt may still look a lot like the past.

Mr Musk's new strategy followed an exclusive Reuters report that Tesla had shelved plans to release a long-awaited new model expected to cost US$25,000 (S$34,000) in late 2025.

Investors had expected the affordable car, often called the Model 2, to drive the company's growth into a mass-market carmaker.

Instead, Tesla said last week that it will use a current platform and production lines to produce what it called "more affordable" models by early 2025. It did not provide details or pricing.