Tesla started "initial production" of a long-awaited cheaper model widely seen as the cure to its sagging sales, the company said in its second-quarter earnings release on Wednesday. Tesla completed the "first builds" of that model in June, and said it expects to kick off mass production of the new car in the back half of 2025.

Tesla says it has started initial production of a more affordable model and expects volume production in the second half of the year.

Tesla said Wednesday that it has begun production of "a more affordable model." Why it matters: The automaker has long promised a cheaper EV, but has said little about it recently, fueling speculation that CEO Elon Musk had lost interest.