Tesla's Q3 conference impresses stock market with plans for an electric car priced at $25,000, marketed as a robo-taxi vehicle.

Tesla, the leading electric vehicle (EV) manufacturer, has announced a series of updates that could revolutionise the EV industry.

In a significant move, Tesla has revealed that reduced production costs in Q3 2024 and the progress of the 4680 battery could potentially bring the starting price for the Model Y closer to the often-cited $25,000. This could make EVs more accessible to a wider audience.

The company is also on track with the release of more affordable electric vehicles in the first half of 2025. While the specific models remain unclear, the Model Y, which is due for a refresh under the codename Juniper in early 2025, is a strong candidate.

Elon Musk, Tesla's CEO, has also announced that the Cybercab, a pedal and steering wheel-free model, will go into production in 2026. The Cybercab, optimised for autonomous driving, is expected to cost around $25,000. Production capacity for the Cybercab will be at least 2 million units per year, with manufacturing taking place in more than one factory.

In terms of autonomous driving, Tesla plans to release V13 of the Full Self-Driving (FSD) software for North American customers. Musk also expects FSD to cover more miles than a human driver before a critical intervention is needed in the second quarter of 2025.

Early FSD buyers who have been waiting for truly autonomous driving for years will be reassured as Tesla is offering a free upgrade for those with HW3 if it turns out to be too weak.

Tesla introduced a significantly more powerful Autopilot computer, AI4, in its electric vehicles starting in spring 2023. With version 12.5, Tesla has improved the distance driven without human intervention by up to a hundred times since the beginning of the year.

As for the automotive industry's market capitalisation, no information is available regarding which companies gained more market capitalization than Tesla in regular trading on Thursday.

These updates from Tesla are set to make electric vehicles and autonomous driving more affordable and accessible, further cementing Tesla's position as a leader in the EV industry.