The rumour of a possible launch of a compact electric Tesla for 25 thousand euros has come back to life

For a long time, just before the unveiling of the Cybercab, some rumours took for granted that a compact model, with a starting price of around 25 thousand euros, would be Tesla’s next big launch. However, the company’s confirmation of its intention to create a robotaxi network as a solution to the daily transport needs of millions of potential customers seemed to suggest that Tesla had decided to take another path.

Two months after the Cybercab was unveiled, a new report from China now suggests that Tesla’s cheap compact electric car could ultimately become a reality after all. According to this report, the model, which will be called Model Q, will reach the market in the first half of 2025. That is, within a period of no more than six months at most.

This report is said to be based on information leaked after an investor meeting with Deutsche Bank, in which Travis Axelrod, Tesla’s current head of investor relations, reportedly took part. The published information indicates that this compact electric car currently goes by the internal code name “Redwood” and that it could finally be called Model Q. For some time it was also rumoured that Tesla might refer to this compact electric car as the Model 2, so we should not rule out this possibility either.

Many unknowns still in the air

For the moment, no details about the design of this new model, with which Tesla will supposedly expand its vehicle lineup, are known. The report published in Chinese media uses an image of a first-generation Model 3, but cropped at the rear to turn it into a smaller compact model. This image, however, appears to be a simple render created with the sole purpose of complementing the article.

On the other hand, although the original rumour claimed that production of Tesla’s new compact electric car would initially start at Giga Texas, before later expanding to Giga Mexico, this new report provides no information on this, beyond stating that it will not be produced at Giga Shanghai as a result of the higher costs that its production would entail at this Chinese plant.

Finally, it should be noted that although the most prudent approach is to take this information “with a pinch of salt” without taking anything for granted, a Bank of America analyst recently stated that Tesla will announce an affordable electric model in its annual report due next April. A claim that would therefore point in the same direction as the report from China referred to in this post.