Tesla's Affordable Models Set for 2025 Release — But Key Details Still Missing

Tesla reiterated plans to launch its affordable vehicle models in the first half of 2025, but the company provided no new insights, leaving fans and investors eager for more concrete updates on the highly anticipated lineup.

Tesla Confirms 2025 Launch for Affordable Models

Today, Tesla reiterated that production and launch of "more affordable models" are still planned for the first half of next year, but the company did not provide any other information regarding when we might anticipate further updates.

For a while now, Tesla has been dropping hints that they will be releasing more reasonably priced models. Even if the Tesla Model 3 isn't too pricey, a lot of people were hoping for the $25,000 "Model 2" that was promised, Electrek shares.

Tesla's Plan for More Affordable Models: What We Know So Far

According to rumors, Tesla was planning to use a groundbreaking "unboxed" manufacturing technique to reduce production costs for their next vehicle.

Nevertheless, as reported by Reuters and later contradicted by Musk, Tesla CEO Elon Musk shifted the company's attention earlier this year to its much-anticipated Robotaxi product and shelved plans for a $25,000 vehicle. It turned out that Reuters was right after all.

After that, though, Tesla kept saying it was working on "more affordable models," but provided no further information.

Tesla's Earnings Report Confirms Affordable Models, But Lacks New Details

To restate earlier guidance, Tesla still intends to release a cheaper model in the next several months, although it will not be as groundbreaking as initially anticipated, according to today's earnings report:

"Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. 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.

This approach will result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times. This should help us fully utilize our current expected maximum capacity of close to three million vehicles, enabling more than 50% growth over 2023 production before investing in new manufacturing lines.

Our purpose-built Robotaxi product will continue to pursue a revolutionary “unboxed” manufacturing strategy."

No New Information in Latest Earnings Report

If you skip forward three months, you'll see that this section is identical to what was in Tesla's Q2 earnings.

The "Next Gen Platform" is still "In development," according to Tesla, and it will be manufactured in different parts of the world, as stated elsewhere in the report. California, Texas, Shanghai, and Berlin are the present locations of Tesla's vehicle manufacturing facilities.