Elon Musk makes huge announcement on future of Tesla electric cars, self-driving vehicles and humanoid robots

The electric vehicle company announced profits of $1.13billion (£910million) in the first quarter of 2024, compared to $2.51billion (£2billion) last year.

It comes at a time when Tesla is dealing with enormous changes to its workflow, with more than 10 per cent of employees being let go across plants in California, Texas and New York.

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The brand is also battling against market competition from Chinese brands looking to make headway into the European and North American markets, in addition to falling consumer demand for electric cars.

In a bid to move ahead of the rest of the industry, Musk said "more affordable" models would start production by early 2025, Reuters reported.

Musk refused to say how much the vehicle would cost, although some experts have predicted that it will cost more than $25,000 (£20,113), which was the estimated price of the cheaper Model 2.

Posting on social media site X, which is owned by Musk, the official Tesla account posted a preview of the autonomous ride-hailing features that will be available on the Tesla app.

The images show an option for drivers to summon the vehicle, how long the vehicle will take to arrive, the time to destination, how many passengers are in the vehicle, climate controls and the option to change the music inside the car.

Investors were also updated on the progress of manufacturing rates for the Cybertruck, with Tesla announcing a production milestone of surpassing 1,000 vehicles built per week.

In a bid to boost sales and shares, Tesla also unveiled the new Model 3 Performance, with a top speed of 163mph and the ability to accelerate from 0-60mph in just 2.9 seconds.

Prices will start from $52,990 (£42,625), with drivers able to order the vehicle on the Tesla website immediately.

Another one of the key announcements from the brand, Elon Musk said that Tesla could launch the sale of "Optimus" robots by the end of 2025.

Humanoid robots have been touted as filling the gap required by labour shortages in factories and warehouses, with Elon Musk looking to exploit the gap in the market.

Speaking to investors, he said: "I think Tesla is best positioned of any humanoid robot maker to be able to reach volume production with efficient inference on the robot itself."

Tesla is looking to rival legacy manufacturers like Honda and Hyundai's Boston Dynamics, while Microsoft and Figure said it had signed a deal with BMW.

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The billionaire even suggested that the humanoid robots could be used in the Tesla car manufacturing line in the coming years.