Rumors are resurfacing about the launch of a new affordable model from Tesla, positioned below the Model Y

Rumors about a cheaper Tesla have been circulating for years. In 2024, the company scrapped the planned launch of a new model priced at around 25 thousand dollars -popularly known as the Model 2- and redirected its efforts towards autonomous driving and robotaxis with projects such as the Cybercab.

For those who had already given up on the launch of that affordable Tesla priced at 25 thousand dollars, there is, however, still a glimmer of hope. Just when it seemed that this model would never reach the market, a new report published in the last few hours once again fuels the rumors.

According to the report, Tesla is studying the development of a smaller, more economical electric SUV that would sit below the Model Y, with the aim of reaching a new market segment that is more price-sensitive. However, the report also notes that the project has not yet received final approval, so anything could still happen.

A change of direction at the company

This possible new bet would be in line with Tesla’s current strategy of gradually moving away from the premium segment. The company has already halted production of the luxury Model S and Model X, and at the top of its range it only keeps the Cybertruck, with limited success for the top-of-range versions and a much greater acceptance of the entry-level version, especially when it was temporarily offered for just 59,990 dollars. That price was held for only 10 days as a launch offer, which triggered such high demand that deliveries were pushed back to 2027. After those 10 days, the price rose by 10 thousand dollars.

The report on a possible launch of a more affordable Tesla SUV also claims, on the other hand, that the initial goal of selling it with a base price of 25 thousand dollars has been ruled out. This new model would be noticeably cheaper than the Model Y, which in the United States is available from 39,990 dollars, but would not reach the 25 thousand dollars originally promised, due to cumulative inflation since then and rising production costs.

As for the dimensions of this new model, its length is expected to be around 4.3 metres, half a metre less than the current Model Y. Its weight will also be much lower than that of the Model Y, dropping from almost two tonnes to around one and a half tonnes, mainly thanks to a reduction in the capacity of the battery pack.

Until the start of production of this new affordable Tesla SUV is officially confirmed, if it does go ahead, everything points to its production taking place at the company’s Gigafactory in Shanghai, at least initially, with production possibly extended later to the German Gigafactory in Berlin-Grünheide. In any case, this is not something that will happen before 2027 at the earliest.

Technical specifications of this car

CrossoverTesla Model Y4 versions · from 39,990 €