Tesla plans to launch lower-priced electric vehicles by summer 2025, CEO Elon Musk announced during the company’s fourth-quarter earnings call.
The announcement follows Tesla’s first year-over-year sales decline, with deliveries dropping to 1.79 million vehicles in 2024 from 1.81 million in 2023.
These new models will incorporate elements from the Model 3 and Model Y platforms, along with Tesla’s architecture unveiled in mid-2024. Production is expected across Tesla’s Gigafactories in the U.S., Germany, and China.
The company hasn’t revealed specific technical details or clarified whether these will be all-new vehicles or modified versions of existing models.
“It wouldn’t make much sense to consider anything other than the Cybercab in the £20-25,000 bracket,” Musk said previously about the vehicle scheduled for 2026.
Industry analysts expect the new vehicles to be priced between the upcoming Cybercab and the current Model 3, which starts at £40,000. This positioning would help Tesla compete with Chinese manufacturers like BYD, Xpeng, and Nio.
The timing is crucial for Tesla, which faces multiple challenges:
- A 7.8% EU tariff on its Chinese-manufactured vehicles
- 60% of potential EV buyers reporting they’re considering other brands
- Declining market share in key regions
Musk’s announcement marks Tesla’s latest attempt to enter the mass-market segment, following similar promises made in early 2024.
