Tesla has recently announced that they have produced the “first builds” of their new “more affordable” electric car models. These models are expected to be stripped-down versions of the popular Model 3 and Model Y vehicles.
Initially, Tesla had discussed launching these more affordable models based on the existing Model 3/Y platform in the first half of 2025. However, the anticipated launch did not happen as planned, which led to some confusion among Tesla enthusiasts.
With the release of Tesla’s Q2 2025 financial results, the company clarified that they have indeed produced the “first builds” of a more affordable model in June. They are now aiming for volume production in the second half of 2025.
It is important to note that Tesla had previously canceled two cheaper vehicles, codenamed NV91 and NV92, in early 2024. Instead, they decided to utilize the production lines for the Model 3 and Model Y to create new vehicles that would be more affordable. These new models are expected to bear a striking resemblance to the existing Model 3 and Model Y vehicles.
Recent sightings of a camouflaged prototype around Tesla’s California factory suggest that the new model, possibly a stripped-down version of the Model Y, will feature fewer materials and features, and may be slightly smaller in size. It is rumored to have a starting price of around $35,000, making it more accessible to a wider range of customers.
While there may be some cannibalization of Tesla’s existing lineup, launching these more affordable models could help increase overall sales volume. It is speculated that Tesla may strategically wait to launch these models in the US until after Q3 to take advantage of increased demand due to the end of the $7,500 federal tax credit starting in Q4.
Overall, the introduction of these more affordable electric car models could potentially attract a new segment of customers to Tesla’s lineup and further solidify the company’s position in the electric vehicle market.
