Tesla's stock experienced a rally following a dip in revenue and profits for the quarter, with shares rising by up to 13% after CEO Elon Musk promised new and potentially more affordable models by early 2025. This surge was a welcome boost as the stock has faced sustained downward pressure this year.

Musk avoided sharing specific details about the new models, but there are hints that he might be referring to the Model 2, a lower-cost option that was rumored to have been shelved, according to a Reuters report on April 5.

At the time, Musk reacted by reposting on X (formerly Twitter), calling Reuters' report a lie but without specifying any inaccuracies. Even in his latest statements, he didn't clarify whether Tesla's plans included the Model 2 or address rumors about its discontinuation.

Musk indicated that the new models would be built on Tesla's existing production line, incorporating elements from both the current platform and the next-generation platform. He warned that this plan might lead to "lower cost reductions than initially expected," suggesting the final price for the new models could exceed the initially projected $25,000 for the Model 2.

Musk also mentioned that the plans for new models would allow for "better management of capital expenditures" during "periods of uncertainty."