Tesla’s $25,000 Vehicle Project Reportedly Revived
Tesla is allegedly reconsidering its $25,000 vehicle project, despite launching two new, more affordable models – the Model 3 and Model Y Standard trims – just last week. According to a report from European media outlet 36kr, Tesla has started advancing two new vehicle projects, codenamed E41 and D50, in China.
Sources familiar with the matter claim that the design and verification reports for these new projects are based on the current Model Y and Model 3. The report suggests that these simplified models would be priced $5,000 to $5,500 lower than the new ‘Standard’ trims and would only be launched if the new ‘Standard’ models fail to meet sales expectations.
Conflicting Reports and Analysis
This new report contradicts the recent launch of the Model 3 and Model Y Standard trims, making it seem unlikely that Tesla is working on even more affordable models. However, it is possible that Tesla is planning to launch a car that undercuts the newest configurations of the Model 3 and Model Y.
It’s worth noting that Tesla’s CEO, Elon Musk, mentioned during the Q3 2024 Earnings Call that a regular $25,000 model is “pointless” and that the company is focusing on the Cybercab, a dedicated autonomous car without steering wheels and pedals. The Cybercab is expected to be priced sub-$30,000 and is likely to utilize Tesla’s new “unboxed process,” a manufacturing technique that aims to streamline production and improve quality.
Tesla’s Shift towards Autonomous Vehicles
The unboxed process, revealed in a patent published last month, is expected to make it easier for Tesla to scale its vehicle production. Musk’s comments during the earnings call suggest that the company is prioritizing the development of autonomous vehicles, such as the Cybercab, over traditional models.
While the report of Tesla reviving its $25,000 vehicle project seems far-fetched, it’s clear that the company is exploring new options to make its vehicles more affordable and competitive in the market.
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