During the recent Q1 2025 earnings call, Tesla executives gave a sneak peek into the highly anticipated “Model 2” and other next-generation electric vehicle designs. The discussion revolved around the company’s plans for new models and their progress in development.
Product development executive Lars Moravy shed some light on Tesla’s design process and the upcoming affordable models. He mentioned that despite facing some last-minute challenges, Tesla is on track to release new models this year. The production ramp-up might be slightly slower than initially anticipated, but there are no major obstacles preventing them from starting production within the expected timeline.
Moravy emphasized Tesla’s focus on maximizing the utilization of its existing factories for the new products. The company aims to offer vehicles with the lowest cost of ownership, emphasizing affordable monthly payments as a key differentiator. This strategy aligns with Tesla’s goal of making electric vehicles more accessible to a broader market segment.
In a recent tweet, Teslarati highlighted the value proposition of the Model 3, especially when factoring in federal tax credits. The discussion raised the question of whether the Model 3 is currently the most attractive Tesla model in terms of design.
Back in January, Tesla’s CFO Vaibhav Taneja hinted at multiple product launches scheduled for this year. Among the most anticipated releases are the affordable vehicles often referred to as the “Model 2” or “Model Q” by the EV community. These vehicles are expected to cater to a more budget-conscious consumer base, expanding Tesla’s market reach.
Before the Robotaxi event last year, there were speculations about Tesla unveiling its affordable next-gen vehicle. While expectations were high for a stripped-down version of the Model 3, Tesla surprised the audience with the Robotaxi vehicle and Robovan design instead. Since then, details about the affordable vehicle have been scarce, leaving investors eager for updates that could positively impact Tesla’s stock performance.
The rumored “Model 2” has been identified as a potential catalyst for Tesla, generating significant interest among investors and supporters. Key questions surrounding the “Model 2” revolve around its design and pricing strategy. According to Moravy, the design of the “Model 2” will be influenced by Tesla’s existing assembly lines and supply chain infrastructure, ensuring a seamless integration into their production processes.
As Tesla continues to innovate and expand its product lineup, the upcoming releases, including the speculated “Model 2,” are expected to play a crucial role in shaping the company’s future trajectory in the electric vehicle market. Investors and enthusiasts alike are eagerly awaiting further updates on Tesla’s next-generation designs and their potential impact on the industry.