Tesla is navigating a turbulent start to 2024 as it grapples with product defects and financial hurdles, marking its most challenging period since the onset of the pandemic-induced auto industry downturn. However, the company’s CEO Elon Musk still remains optimistic, hinting at the possibility of both new and cheaper Tesla models coming in the near future.

For the first time since 2020, the electric vehicle (EV) maker reported a negative quarterly cash flow, burning through $2.5 billion since the beginning of 2024. With a decline of over 40% in Tesla shares since January, during an earnings call this week, Musk addressed the setbacks his company has encountered.

“We navigated several unforeseen challenges,” Musk said on the call. “As we have seen the EV adoption rate globally is under pressure and a lot of other auto manufacturers are pulling back on EVs.”

Electric vehicle sales growth has slowed so far in 2024, but that has just been the tip of the iceberg for Tesla’s troubles. Ranging from recalling millions of vehicles in China to concerns over safety problems with its Cybertruck’s accelerator pedal shown in viral TikTok videos, the company has had to implement significant layoffs this quarter, letting more than 10% of its global workforce go.

Despite these challenges, Musk indicated he still remains committed to delivering on promises of new Tesla models, particularly more affordable options that the company has been teasing since 2020. Remarks made by the Tesla CEO suggest that a $25,000 model could become a reality potentially before the end of this year.

“We’ve updated our future vehicle lineup to accelerate the launch of new models, so we expect it to be more like the early 2025 — if not late this year — for these new vehicles including more affordable models,” Musk said. “That price is accessible to people, the vast majority of people are living paycheck to paycheck so it is important to keep improving the affordability.”

Investors responded positively to Musk’s announcements, with Tesla’s stock surging by 13% following the news. Musk also unveiled plans to introduce Robotaxis and license out Tesla’s self-driving assistance system.

“I make sure Tesla is very prosperous,” Musk said on the earnings call. “It is prosperous, and it will be very much so in the future.”