Tesla recently provided a significant update on its plans to introduce a range of affordable models, a project that has been in the works for the past few years. This update was shared during the Q2 2025 Earnings Call, where Tesla disclosed new details about the production timeline for these affordable vehicles.
According to the information released in the Shareholder Deck after the market closed, Tesla announced that initial production of the affordable models was successfully completed in June of this year. The company stated that volume production of these vehicles is scheduled to commence in the second half of 2025. CEO Elon Musk confirmed during the call that these cars would be available for purchase starting in Q4 of this year.
The decision to launch the affordable models in Q4 aligns with the timeline of the EV tax credit, which is set to expire at the end of Q3. By introducing these models after the tax credit expires, Tesla aims to avoid cannibalizing sales of its current mass-market vehicles, such as the Model 3 and Model Y.
As for the pricing of the affordable models, it still remains a mystery. Elon Musk has previously mentioned that these models would be priced at under $30,000, including the tax credit. However, with the tax credit phasing out, it is speculated that the price may be around $35,000. This would make the affordable models more accessible, especially considering that the least expensive Tesla model, the Model 3 Long Range Rear-Wheel-Drive, is priced at $42,490 before the tax credit.
The introduction of these affordable models could be a key factor in Tesla’s return to annual growth. Despite the company’s focus shifting towards autonomy and Robotaxi technology, annual vehicle deliveries remain an important metric for investors to gauge EV adoption trends and future prospects for Tesla.
Overall, the launch of these affordable models signifies Tesla’s commitment to making electric vehicles more accessible to a wider audience. With production set to ramp up in the coming months, Tesla is poised to make a significant impact in the EV market with its new lineup of affordable models.