Tesla is reportedly planning to launch a new affordable electric vehicle, tentatively referred to as the “Model Q,” in the first half of 2025.
This development aligns with Tesla’s ongoing strategy to introduce cost-effective vehicles, expand its demographic reach, and bolster its long-term annual growth rate.
Tesla has long hinted at launching a new platform to support more affordable electric vehicles.
While rumors about vehicles like the Model Q and Model 2 have circulated for years, recent reports provide some substance to these claims.
According to Globalchinaev, Tesla announced during an investor meeting with Deutsche Bank that it plans to introduce a vehicle under $30,000, potentially competing with models like the BYD Dolphin and Volkswagen ID.3.
The report also claims the vehicle will be 15% smaller and 30% lighter than the Model 3, making it a compact addition to Tesla’s lineup.
It suggests the vehicle could be tied to Tesla’s earlier “Project Redwood,” initially reported in January, which aimed to deliver a mass-market vehicle built on a new platform.
However, there’s conflicting information about whether this platform remains active or paused.
Tesla China Denies Specifics
Tesla China was quick to respond to these reports, stating through MKTnews.net that it has
“no information to share about the Model Q.”
This adds a layer of uncertainty to the rumors but doesn’t entirely dismiss the possibility of a new vehicle in development.
Update from Deutsche Bank Report
Further clarity emerged after The Wall Street Journal’s Becky Peterson reviewed a copy of Deutsche Bank’s report. She shared the following insights:
“I got a copy of the Deutsche Bank report. Here’s what it does say:
- Travis Axelrod (Investor Relations at Tesla) met with DB for its Autonomous Driving Day on December 5 in NYC.
- DB describes ‘the new Tesla model,’ which it calls ‘Model Q.’
- DB says it will launch in the first half of 2025, and will cost less than $30k with subsidies, or $37,499 if Trump cancels the IRA tax credit.
- DB says it will be built on Tesla’s existing lines.”
Peterson clarified that the Deutsche Bank report does not reference “Project Redwood” or indicate any differences in size or cost compared to the Model 3.
Additionally, she noted:
“Tesla told investors on its Q3 earnings call that it plans to deliver a more affordable model in H1 2025. They said that to do that it will lower the price of its current lineup and then eventually sell robotaxis. When asked about a non-robotaxi, $25,000 car Musk said: ‘We’re not making a non-robo…’”
Summary of the Rumors about Model Q
- The Model Q name appears to originate from Deutsche Bank, not Tesla.
- Tesla aims to launch a sub-$30,000 EV in 2025, possibly built on its existing manufacturing lines.
- Conflicting details surround the vehicle’s specifications and its link to Project Redwood.
- Tesla China has neither confirmed nor denied details about the new vehicle.
While excitement builds around the possibility of a budget Tesla, many questions remain unanswered.
Will the “Model Q” be the breakthrough EV to revolutionize the market, or is it just another chapter in the speculation surrounding Tesla’s roadmap? Time will tell.