Tesla finished the first pilot models of its lower-cost electric cars in June. The company plans to start larger production in the second half of 2025. According to Tesla’s Q2 2025 shareholder report, the new affordable cars were built last month. Elon Musk said, “Plans for new vehicles that will launch in 2025 remain on track, including initial production of a more affordable model in 1H25”.
Musk explained that this timing gives Tesla a chance to “keep producing Model 3 and Model Y through the third quarter while federal EV tax credits in the U.S. are still available.” He added, “The biggest obstacle to getting more people to own EVs is that they don’t have enough money in their bank account to buy it. Literally, that is the issue. Not a lack of desire, but a lack of ability. So, the more affordable we can make the car, the better”.
Tesla has not given exact prices for the new car. Musk’s earlier remarks pointed to a price under $30,000 after incentives. Analysts now think the pre-incentive price could be in the mid-$30,000 range, about $7,000 less than the cheapest Model 3 right now.
Tesla delivered about 1.8 million vehicles per year recently. Musk believes, “If you have a great product at a great price, the sales will be excellent.” He also said, “It will be a very big deal when people can release their car to the fleet and have it earn money for them”.
In brief, the lower-priced Tesla, sometimes called the “Model Q,” is no longer an idea. Early builds are done, and Tesla expects to start shipping cars to buyers by late 2025.
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