# Investors say a new model could boost demand, but may end up eating into margins.

*business · news · 2026-04-10 · The Manila Times*

## Key points

- Tesla plans to develop a smaller, lower-cost EV, likely to be produced first in China.
- Tesla produced 50,000 more vehicles than it delivered last quarter, its widest gap in four years.
- The $7,500 US federal EV tax credit has been phased out, further straining Tesla's demand.
- Tesla previously scrapped plans for a cheaper vehicle in 2024 to focus on self-driving and robotics.
- Analysts expect Tesla's vehicle sales to decline for a third consecutive year, impacting cash flow.

**Companies:** Tesla, BYD
**Countries:** China, United States

[Read the full story on The Manila Times](https://www.manilatimes.net/2026/04/11/business/foreign-business/teslas-lower-cost-ev-plan-seen-boosting-volume-risking-margins/2318107)

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