Tesla prepares the most affordable model – launching in June
By ForGeeks Tesla has officially confirmed: production of its long-awaited budget electric car will start in June. Despite challenging financial results for the first quarter of 2025, the manufacturer is betting on a new, more affordable car, which it says is “as important as ever.”
Tesla has confirmed that it will launch a new, more affordable model in June.
The company hasn’t revealed exactly what model this budget version will be – whether it will be a stripped-down Model Y or an all-new electric car based on the upcoming Cybercab robotaxi. However, one thing is certain: the production lines are ready, and the launch is on schedule for the first half of the year.
Delay rumors refuted: Tesla insists June
Tesla’s announcement came as a surprise, especially after a recent Reuters report that suggested a possible delay of the budget EV. Those rumors shattered investor confidence and sent the company’s stock tumbling. However, at the quarterly conference call, Tesla CFO Vaibhav Taneja confirmed: the launch is still scheduled for June.
The company has been able to save time by combining preparations for the new models with retooling plants for the updated Model Y. That means no major modernization of production capacity is likely to be required.
The company has been able to save time by combining the preparation of the new models with the retooling of its plants for the updated Model Y.
“As planned, the retooling of lines for the new Model Y resulted in several weeks of downtime. During this period, we also made preparations for the launch of the new models, which is expected later this year. Against a backdrop of economic uncertainty and changes in trade policy, more affordable solutions are becoming particularly important.”
under $30,000 and based on current models?”
Rumors have been circulating for some time that Tesla is preparing a “next-generation electric car” for under $30,000. It’s unclear whether that price is inclusive of tax credits, but such a goal sounds ambitious. The company also has a limited production Cybercab and a Semi truck scheduled to launch in 2025. Theoretically, either of those could be considered a “new model.”
But during the quarterly report, Tesla’s vice president of vehicle development, Lars Moravi, made it clear: The budget electric car project is almost ready, with “the last technical nuances” left to be ironed out, and it’s only a matter of time before it’s done. However, Moravi warned that production ramp-up will be slow due to the difficult situation in the auto industry.
He also confirmed that the main constraint in building the model is the need to use existing assembly lines. This indicates that the new electric car is likely to be a simplified version of the Model Y, rather than a radical new project like the Cybercab, which is assembled using a unique modular “unpacking” scheme.
Moravi warned that the ramp-up would be slow due to the unique modular “unpacking” scheme.
Tesla promises: quality won’t suffer
“With the recent improvements to the Model 3 and Model Y platforms, we’ve built great cars at reasonable prices and added a lot of features. We’re not going to put out a product worse than the ones we’ve done before.”
He emphasized that the new model will be similar in appearance to Tesla’s existing electric cars, and most importantly, it will be affordable and will go on sale.
So the company is clearly betting not on revolution, but evolution: cheaper versions of already known models that can be produced without the expense of new factories and still retain recognizability and basic characteristics.
