Tesla just said it's going to launch cheaper EVs sooner than expected

• Tesla says cheaper models are coming sooner than they'd planned.
• The news comes as the carmaker announced Q1 results and noted global EV sales are under pressure.
• CEO Elon Musk has long promised the launch of a $25,000 Tesla.

Tesla is pivoting its plan for vehicle production amid a steep revenue drop in the first quarter of 2024.

The electric vehicle maker said Tuesday it will be launching "new and more affordable products" ahead of its previous timeline, which had predicted production to start in the second half of 2025.

To make the process move along faster, the new EVs "will be able to be produced on the same manufacturing lines as our current vehicle line-up," it said.

"Ultimately, we are focused on profitable growth, including by leveraging existing factories and production lines to introduce new and more affordable products," the company said.

Tesla's revenue slumped 9% year-over-year in Q1 — the steepest drop since 2012. Deliveries of its vehicles fell 9%, far faster than its 2% drop in production.

"Global EV sales continue to be under pressure," it also said today.

In recent weeks, Tesla has slashed the prices of the Model S, X, and Y in the US and China. It has faced stiff competition from Chinese automakers who also slashed vehicle prices.

Since 2020, Musk has claimed that a $25,000 EV is attainable in the near future. It has also launched the Cybertruck —with a retail price that can reach six figures.

The company is also turning to job cuts. CEO Elon Musk told staff earlier in April that Tesla plans to slash more than 10% of its workforce.