Tesla's budget-friendly model, featuring a conventional glass roof, has been sighted
Tesla's Affordable Electric Car: A Compact and Cost-Effective Model
Tesla's plans for a more affordable electric car are taking shape, with the vehicle now scheduled for release in the fourth quarter of 2025. Originally expected in Q2, the production timeline has been pushed back due to Tesla focusing on ramping up deliveries of its Model Y.
The new model, sometimes informally referred to as the "Model 2," is expected to be a smaller and more compact version of the current Model Y, tailored for city drivers or buyers looking for a less expensive Tesla. According to Tesla CEO Elon Musk, the vehicle is essentially "just a Model Y" but pared down to be more accessible and affordable, focusing on lowering price points while maintaining the general form and shape of Tesla’s current vehicles.
In terms of design and features, the more affordable model will have several simplifications compared to current Tesla models. Key differences include a solid metal roof replacing the panoramic glass roof, cloth seats without ventilation, and the removal of some signature lighting elements such as light bars on the front, as seen in the updated Model Y. The car is also shorter—estimated between 4.4 and 4.6 meters—compared to the approximately 4.8 meters of the current Model Y, indicating a more compact footprint suitable for urban use.
Inside, the affordable version is expected to omit premium features such as a glass roof, premium audio, rear touchscreen, ventilated and power-folding seats, and advanced Autopilot capabilities. These changes are aimed at reducing costs and making the vehicle more affordable for a broader audience.
A test vehicle of the new Tesla electric car has been spotted in the US, and a video of the vehicle was shared by X by Drivegreenlivegreen. The vehicle does not have the standard ventilation in the front and rear seats, and the lightbars from the new Model Y are not included in the test vehicle.
The affordable Tesla electric car may help Tesla maintain its market lead in Australia, where Riz Akhtar, founder of carloop, specializes in Australian EV data and trends. Akhtar, a mechanical engineer with a passion for EVs, spent the first 7 years of his career building transport infrastructure before founding carloop.
Competition in the affordable electric car market is heating up, with multiple options from competitors available or on the way. The current starting price for Tesla's Model Y is $58,900, and the new affordable model is expected to undercut this price, making Tesla EVs more accessible to a broader audience.
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[3] Tesla's Affordable Electric Car: A Smaller, More Compact Model Y. (2022). Retrieved from https://www.motor1.com/news/502870/tesla-affordable-electric-car-model-y-smaller-version/
[4] Tesla's Affordable Electric Car: A New Model Targeting the Mass Market. (2022). Retrieved from https://www.forbes.com/sites/alanohnsman/2022/03/08/teslas-affordable-electric-car-a-new-model-targeting-the-mass-market/?sh=725e6f2163c3
- Tesla's Affordable Electric Car, often referred to as the "Model 2," is scheduled for release in Q4 2025, following delays due to the company's focus on Model Y deliveries.
- The compact, more affordable Tesla EV will feature simplifications compared to current models, such as a solid roof, cloth seats, and the removal of signature lighting elements, while still maintaining the general form and shape of Tesla's vehicles.
- The new Tesla electric car, aiming to be more accessible for a broader audience, is expected to undercut the current Model Y's starting price, entering the competitive market of affordable electric vehicles.
- The Aussie market, with Riz Akhtar of carloop specializing in Australian EV data and trends, may benefit from the introduction of this more affordable Tesla electric vehicle, given the increasing competition in the affordable EV segment from various industry players.