Tesla is developing an affordable model priced under $30,000, which is expected to launch in the first half of 2025.
The information was confirmed by Travis Axelrod, Tesla’s head of investor relations, to *Deutsche Bank*. Informally called “Model Q,” the car would be produced on existing assembly lines and could be a simplified version of the Model 3, equipped with a smaller battery to reduce costs. The estimated price already includes the $7,500 tax credit, as part of the Inflation Reduction Act.
Although Tesla canceled similar plans in April, the new model is expected to help increase sales by up to 30%, even if it reduces short-term profits due to the investment in the new production line.
Rumors suggest that the car may be smaller than the Model 3 or even adopt an innovative design like the Cybercab, which does not require a steering wheel or pedals, but faces regulatory restrictions. Additionally, there are plans for a larger version of the Model Y with three rows of seats, aimed at the Chinese market.
Currently, the Model 3 is Tesla’s most affordable model, starting at $44,130. To reach such a low price on the new model, the company may use smaller batteries, less powerful motors, or even more economical materials in the interior. However, analysts recommend caution with the announced timeline, given Tesla’s history of delays and changes to its projects.
Source: Car and Driver | Photo: Instagram @teslamotors | This content was created with the help of AI and reviewed by the editorial team