Stripped-down versions of the Model 3 and Model Y electric vehicles will be introduced by Tesla.
Tesla, the leading electric vehicle (EV) manufacturer, has announced plans to launch affordable electric vehicles based on the current Model 3 and Model Y platforms. The initial production is set to begin in June 2025, with volume production expected in the second half of 2025, and customer availability targeted for Q4 2025 [1][2][4].
The first model to be released will be a lower-priced version of the Model Y, followed by a more affordable Model 3 at a later date [4]. To achieve a lower price point, Tesla is planning to remove or simplify several premium features found in current Model 3 and Model Y vehicles [3][5].
The cost-cutting measures include replacing the panoramic glass roof with a solid metal roof, removing premium amenities such as ventilated and power-folding seats, opting for simpler cloth seats without ventilation, eliminating the rear touchscreen, omitting premium audio systems, using simpler wheels, lighting (no light bars), and bumpers, and offering fewer exterior color options [3][4][5].
The resulting vehicle is expected to resemble the current Model Y in form but be more compact (estimated between 4.4m and 4.6m in length versus the existing 4.8m Model Y) [5] and focused on affordability over luxury.
Tesla's CEO, Elon Musk, has emphasized that demand remains very high but that affordability is a key barrier for many consumers, and these stripped-down models aim to make Tesla vehicles accessible to a broader audience by lowering the purchase price [1][4].
Vaibhav Taneja, Tesla's chief financial officer, has mentioned that there are limitations when using existing lines to produce multiple form factors [1][2]. However, the affordable electric cars will still be built on Tesla's lines [2].
Lars Moravy, VP of vehicle engineering at Tesla, has stated that the affordable cars will be affordable and purchasable [3]. Tesla executives have admitted that production might have been delayed, but no major hurdles remain [3].
The company's shareholder deck suggests that 2025 is still the likely date for the availability of the cheaper EVs [6]. Additionally, Tesla offers the Full Self-Driving (FSD) feature through a referral link for Tesla buyers [7].
References:
- Tesla's Affordable Electric Vehicles: What We Know So Far
- Tesla admits it's struggling to make affordable electric cars
- Tesla's affordable EVs: What's being removed to cut costs?
- Tesla's Affordable Electric Vehicles to Debut in 2025, According to Elon Musk
- Tesla's affordable EVs: What's being removed to cut costs?
- Tesla's shareholder deck suggests 2025 is still the likely date for the availability of the cheaper EVs
- Tesla's Full Self-Driving offer is available through a referral link for Tesla buyers
- Tesla's CEO, Elon Musk, has acknowledged that affordability is a critical concern for many consumers, as demand for their electric vehicles remains high.
- To make Tesla vehicles accessible to a broader audience and lower the purchase price, Tesla is planning to release more affordable versions of the Model 3 and Model Y, starting with a lower-priced Model Y.
- To achieve cost savings for the affordable electric vehicles, Tesla is removing or simplifying several premium features from the current Model 3 and Model Y, including replacement of the panoramic glass roof with a solid metal roof, omitting premium audio systems, and offering fewer exterior color options.
- The affordable electric cars will be built on Tesla's existing production lines, but Vaibhav Taneja, Tesla's chief financial officer, has pointed out that there are limitations when using these lines to produce multiple form factors.
