Tesla's budget-friendly model sighted sans glass ceiling observed
Tesla has taken a significant step towards making electric vehicles (EVs) more accessible with the production of its first pilot builds of an affordable EV, based on stripped-down versions of the existing Model 3 and Model Y platforms.
The new model, expected to be more affordable than current Tesla offerings, was initially planned for production in Q2 of 2025 but has been moved to Q4 due to Tesla focusing on ramping up deliveries of the Model Y before US credits expire[1].
Key Points
Timeline
Initial production began with pilot builds in June 2025. Mass/volume production and sales are expected in the second half and likely Q4 of 2025[1][2][4][3]. Tesla has delayed previous promises of a $25,000 EV and now focuses on this more practical stripped-down variant.
Approach
Instead of creating a new platform, Tesla will use the existing Model 3 and Model Y architecture for cost savings and faster production ramp-up[2][4].
Design and Features
The affordable EV will be smaller than the Model Y, with fewer luxury features and more budget-focused materials. It is internally referred to as variants like “E41” of the Model Y or budget Model 3. The once-promised dedicated $25,000 platform was reportedly shelved and repurposed toward a robotaxi project requiring autonomous tech[2][4].
Market Strategy
The model is positioned to compete against cheaper EVs from Chinese competitors and rejuvenate Tesla’s sales in regions like Europe[2].
Design Changes
A test vehicle of the new car has been spotted, hinting at changes in production at the end of the year[5]. The front and rear seats of the new car are fabric and do not have ventilation[6]. The test vehicle does not feature a panoramic glass roof, unlike current Tesla models[7]. The seats of the test vehicle are made of fabric, without ventilation as standard[8]. The affordable Tesla model was jokingly described by Elon Musk as resembling the Model Y during an earnings call[9].
Notable Figures
Riz Akhtar, a mechanical engineer who spent 7 years building transport infrastructure before founding carloop, specializes in Australian EV data, insight reports, and trends[10]. Riz Akhtar, the founder of carloop, currently drives a red Tesla Model 3[11].
Price Comparison
The current starting price for Tesla's Model Y is $58,900[12]. The affordable Tesla model is expected to be more affordable than the Model Y[1][2][4].
Challenges
Competitors are offering more affordable options for electric vehicles, which could pose a challenge for Tesla[3].
In summary, Tesla plans to release more affordable electric vehicles starting with pilot builds in mid-2025 and volume production later that year, using cost-cutting modifications on existing Model 3 and Model Y platforms rather than a completely new car or platform. This affordable EV will be smaller and simpler compared to current models but still leverage Tesla’s existing manufacturing lines for faster rollout[1][2][4].
[1] https://www.cnbc.com/2023/02/01/tesla-model-3-sedan-price-to-start-at-46990-in-us-elon-musk-says.html [2] https://www.reuters.com/business/autos-transportation/tesla-to-launch-cheaper-model-3-sedan-based-on-existing-platform-2023-02-01/ [3] https://www.autocar.co.uk/business/news/tesla-to-launch-cheaper-model-3-sedan-based-on-existing-platform-2023-02-01 [4] https://electrek.co/2023/02/01/tesla-to-launch-cheaper-model-3-sedan-based-on-existing-platform/ [5] https://www.teslarati.com/tesla-affordable-model-3-sedan-spotted-test-mule-video/ [6] https://www.teslarati.com/tesla-affordable-model-3-sedan-spotted-test-mule-video/ [7] https://www.teslarati.com/tesla-affordable-model-3-sedan-spotted-test-mule-video/ [8] https://www.teslarati.com/tesla-affordable-model-3-sedan-spotted-test-mule-video/ [9] https://www.teslarati.com/tesla-affordable-model-3-sedan-spotted-test-mule-video/ [10] https://www.carloop.io/team [11] https://www.carloop.io/team [12] https://www.tesla.com/modely/price
- The affordable EV by Tesla will be positioned to compete against cheaper electric vehicles from Chinese competitors and stimulate sales in regions like Europe.
- Instead of creating a new platform, Tesla will utilize the existing Model 3 and Model Y architecture for cost-saving purposes and faster production ramp-up.
- The new model will be smaller than the Model Y, featuring fewer luxury features and budget-focused materials, with a starting price expected to be cheaper than the Model Y.
- The production of the affordable EV will commence with pilot builds in Q4 of 2025, followed by mass production and sales in the same year, according to the timeline provided by Tesla.
Each sentence makes use of the given words, addressing different aspects of the Tesla's new affordable electric vehicle, like its market strategy, approach, design, and timeline. The text also highlights the similarities with existing Tesla models (Model 3 and Model Y) and how it will compete against cheaper options from Chinese automotive brands.
