Tesla’s Long-Rumored Affordable Car Appears to Be a Go

The will they, won’t they cycle of rumors around Tesla’s long-awaited affordable car is swirling again, this time because the automaker’s head of investor relations told a bank that it would launch in the first half of 2025. Pricing for the new car is expected to land at around $30,000 after incentives, but you’d be forgiven for wondering how many times we’ve heard that promise before.

The executive confirmed the model in a conversation with analysts at Deutsche Bank. While the bank’s staff has taken to calling it the “Model Q,” Tesla hasn’t confirmed a name for the upcoming car. It’s expected to be built using the automaker’s current production lines, making the production ramp-up process cheaper and faster.

Tesla said it expects the new car to increase its volume by 20 to 30 percent over the next year, though as InsideEVs pointed out, its investments in getting the new model off the ground will cut into profits. Interestingly, Deutsche Bank said it expects more than one new model, including a three-row, long-wheelbase Model Y variant for the Chinese market.

The affordable car project was rumored to have been killed as Tesla poured more resources into developing its autonomous taxi program. That said, it’s likely what the automaker needs to stay competitive with the flood of Chinese EVs, and it could help buoy sales if the federal EV tax credit goes away.

[Images: Tesla]

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