Tesla has just released a new update about its cheaper electric vehicle plans, but not involving the highly awaited $25,000 model.
Cheaper Tesla EV due in 2025
Tesla announced with the release of its Q2 2024 Financial Results that the long-promised low-cost electric vehicles will finally arrive early next year.
The American electric vehicle giant outlined plans to deliver affordable electric vehicle models to the market as customers start to favor lower-cost options over premium since the surge of China-made EVs.
Tesla also announced its decision to speed up the timeline of these upcoming models’ launch to the first half of 2025.
“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.”
Tesla
What to expect from Tesla’s impending cheaper EVs?
Tesla teased during the Q2 2024 Earnings Call that the planned lower-cost electric vehicle offerings will tap into several features from both the next-gen platform and current platforms.
In addition, the Musk-led electric automaker revealed plans to manufacture these upcoming models on the same production lines as its currently available products.
“These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up.”
Tesla
Tesla’s original plan
In hindsight, Tesla had expected to unveil its first cheaper electric vehicle offering in the second half of next year.
At the time, Tesla intended to leverage its 4680 battery cell, structural battery pack, and unboxed manufacturing process to develop the $25,000 electric car.
However, Tesla decided to scale back on this plan earlier this year to focus on its Artificial Intelligence and Self-Driving development through the Robotaxi platform.
As a result, Tesla ditched two planned models based on the unboxed manufacturing process. It also announced that the upcoming Robotaxi would be the only product that will use the radical new platform.
Tesla now aims to develop these new cheaper EVs based on the Model 3 sedan and Model Y crossover. However, the Musk-led company clarified that these models would not offer the same cost reduction as the $25,000 Tesla car.
Nonetheless, Tesla reiterated that launching these low-cost EVs will enable it to fully optimize the existing production capacity at its factories to 3 million units. The imminent arrival of low-cost Tesla EVs can potentially revive the company’s sales, which have been declining so far this year.
