According to the news agency, “Musk said last year he shelved the plan for a $25,000 car, known as Model 2, and he hasn't mastered the new battery technology that he has stated would be crucial to the cheaper cars.

“Expanding into the mass market is critical to meeting Tesla's goal of increasing vehicle deliveries 15-fold – to 20 million – by 2030. Tesla cut prices in recent months to boost sales, which were pressured by a weak economy and growing competition.”

At the time of publication, Tesla’s shares were up about 60% year-to-date but were still at half their November 2021 peak.

The lower-priced car is expected to be the centrepiece of Musk's 'Master Plan Part Three', which he will offer at an 'Investor Day' on 1 March, along with plans for factory expansion and capital spending.

“Whatever he says about timelines, though, investors will be wary, since he has missed his most prominent deadlines while building the world's most valuable car company,” Reuters commented.

"The formula for decoding Musk is pretty simple. Take whatever time frame he has, and multiply it by two," said Gene Munster, Managing Partner at Deepwater Asset Management, which owns Tesla shares.

Munster expects the new car platform to be rolled out in 2025 at the earliest, which would still be years faster than the typical auto industry development of a new vehicle.

Tesla did not respond to Reuters' request for comment.