Spotted: Tesla's upcoming "cost-effective" model, lacking a glass ceiling
Tesla's Affordable Electric Car: Delayed but Still On Track for Q4 2025
Tesla's long-awaited affordable electric car, a more budget-friendly version of the Model Y, is now in the early stages of production and is expected to launch in the fourth quarter of 2025 (Q4 2025).
The initial production of this model began in June 2025, meeting Tesla's original timeline for early production stages, though the full launch was delayed beyond the first half of 2025. Elon Musk, Tesla's CEO, has indicated that the official launch will be between October and December 2025.
This new model is believed to be a de-contented, simpler version of the Model Y, not a completely new platform or a compact “Tesla Model Q.” Instead, it is a stripped-down midsize crossover.
Pricing estimates suggest a potential significant price cut. The starting price may be around $36,000, which is about a 20% reduction from the current Model Y Rear-Wheel Drive price ($44,990). There is speculation that prices could drop closer to $30,000 in the future.
Two versions are expected: a Rear-Wheel Drive base model starting near $16,990 (as rumored for a “Model 2” designation) and an All-Wheel Drive variant costing more.
The test vehicle, recently spotted in the US, appears to be shorter in length than the standard Tesla Model Y, approximately between 4.4 and 4.6 meters long. The inside of the test vehicle features fabric seats, instead of the ventilated seats standard in current models. The solid roof of the test vehicle also suggests a departure from the panoramic glass that has featured in all current Tesla models.
The delay in the production of this affordable Tesla model is due to Tesla focusing on ramping up deliveries of its Model Y before US credits expire.
Riz Akhtar, the founder of carloop, a Melbourne-based company that focuses on Australian EV data, insights, and trends, has expressed his excitement about this new development. Akhtar, a mechanical engineer, previously spent 7 years of his career building transport infrastructure before starting carloop. He currently drives a red Tesla Model 3.
Competitors in the market are also offering and planning to offer more affordable electric car options, which could intensify the competition in the electric vehicle market.
If produced, this affordable Tesla model could help Tesla maintain its market lead in Australia, where Akhtar and his company are based.
[1] Tesla's Affordable Electric Car Delayed to Q4 2025: [Link to Source] [2] Tesla's Affordable Electric Car Production Begins: [Link to Source] [3] Tesla's Affordable Electric Car: Two Expected Versions: [Link to Source] [4] Tesla's Affordable Electric Car: A Simplified Model Y Variant: [Link to Source] [5] Tesla's Affordable Electric Car: Potential Price Cuts: [Link to Source]
- The anticipated affordable electric car from Tesla, set to launch in Q4 2025, is a cost-effective version of the Model Y, marking Tesla's foray into the affordable electric vehicle segment of the automotive industry.
- As technology advances and competition intensifies in the electric-vehicles sector, Tesla's focus on affordable cars could bring significant changes in the finance and lifestyle aspects of transportation.
- With the affordable Tesla car expected to range from around $16,990 to $36,000, it potentially challenges the pricing structure of other electric vehicles in the transportation industry.
- The Australian market could witness an interesting turn with the prophesied arrival of Tesla's affordable electric vehicle, as it opens new possibilities for both the lifestyle and technology sectors.
