Tesla recently provided an extensive update on its plans to introduce a range of affordable models, a project that has been in the works for a few years now. The company shared new details during its Q2 2025 Earnings Call, shedding light on the production timeline for these vehicles.
According to Tesla’s Shareholder Deck, initial production of the affordable models was successfully completed in June of this year. The company plans to begin volume production of these vehicles in the second half of 2025. CEO Elon Musk confirmed during the call that the affordable models will be available starting in Q4, strategically timing the launch to coincide with the expiration of the EV tax credit at the end of Q3 to prevent cannibalization of sales from the current mass market vehicles like the Model 3 and Model Y.
Musk emphasized the company’s focus on maximizing production rates by the end of Q3 to avoid complexity and ensure a smooth transition to the affordable models in Q4. While the pricing of these models remains undisclosed, Musk has previously hinted that they will be priced under $30,000, including the tax credit. With the tax credit phasing out, consumers can expect a price point around $35,000, making the affordable models an attractive option compared to the current entry-level Model 3 Long Range Rear-Wheel-Drive priced at $42,490.
The introduction of these affordable models could potentially drive Tesla’s return to annual growth, with the company delivering 1.8 million vehicles in the past two years. While Tesla’s focus is shifting towards autonomy and Robotaxi technology, investors still view annual delivery figures as a key indicator of EV adoption trends and the company’s future prospects. The affordable models are poised to play a significant role in Tesla’s continued success in the electric vehicle market.