Tesla, TSLA, reportedly is planning to launch a new, sub-$30k EV, the Model Q, in the first half of 2025.
Tesla is reportedly preparing to unveil the affordable Model Q in the first half of next year, marking a significant step in its strategy to expand its annual growth through a lower-cost vehicle. The move aligns with Tesla’s broader plans to develop a new platform enabling more cost-effective models, which could open up access to a wider customer base and drive sustained sales growth.
Rumors about a potential Model Q, Model 2, and other affordable options have circulated for years. However, a new report from China lends credibility to these claims. According to GlobalChinaEV, Tesla disclosed in an investor meeting with Deutsche Bank that it intends to launch the Model Q at a price below $30,000, targeting competition like the BYD Dolphin and Volkswagen ID.3.
Although Tesla and CEO Elon Musk have not officially commented on the report, it is consistent with statements made earlier this year. In early 2024, Tesla indicated that it expected slower growth that year due to its focus on developing the next-generation platform aimed at introducing affordable vehicles. Tesla has also reiterated plans to launch such models in the first half of 2025, which aligns with the rumored timeline for the Model Q.
The Model Q is said to be part of the so-called "Project Redwood," first reported on in January. The vehicle is expected to be 15% smaller and 30% lighter than the Model 3, offering a more compact and streamlined addition to Tesla’s lineup. Given Tesla’s simultaneous efforts on Robotaxi services and Full Self-Driving technology, the Model Q is likely to feature a minimalist design.
While it will include traditional steering and pedal controls initially, the vehicle is expected to be geared toward autonomous driving capabilities, aligning with Tesla's long-term vision for self-driving transportation.
