Tesla Inc.s TSLA next-generation budget car will have a key difference from the rest of its lineup.

What Happened: Tesla CEO Elon Musk said on Tuesday the companys next-generation smaller car will work mostly in autonomous mode, Reuters reported.

There is a clear path to delivering a car that cost half as much to build as Teslas Model 3 sedan, said Musk.

However, Musk did not offer any additional details on timing and models, as per Reuters.

See Also: Best EV Penny Stocks Right Now

Why Is It Important: The low-end car, which some refer to asModel 2, will likely be 15% shorter and 30% lighter, with a 25% smaller-sized battery, relative to theModel 3,according to an analystwho predicted that it would catapult Teslas revenue to $400 billion by 2040.

Tesla is said to be delivering vehicles with Hardware 4 (HW4)self-driving hardware upgrades without any fanfare.

Last month, Tesla voluntarily recalled 362,758 vehicles, saying the Full Self-Driving Beta software may cause crashes.

However, Tesla is not the only one facing trouble with autonomous vehicles. Earlier this week, General Motors GM robotaxi unit Cruises COO Gil West said that the company is eyeing cost cuts this year.

Price Action: Shares in Tesla fell 3.15% to $187.71 on Tuesday and gained nearly 0.2% after hours, according to data from Benzinga Pro.

Read Also: This Tesla Video Promoted By Elon Musk Shows Vehicle Driving Itself, But Tesla Engineer Reveals It Was Staged And Car Actually Crashed Into A Fence

Articles You May Like

Planet Organic puts administrators on standby in race for survival
Data analytics start-up Quantexa gains unicorn status with GIC funding
Lebanon reverses controversial decision to delay clocks change
Musk passes former president in taking over Twitter throne
Business leader questions use of taxpayer funds in Trump indictment