Tesla Inc. is set to launch a new vehicle called Model Q in the first half of 2025, priced below $30,000 after subsidies. This move is expected to make electric vehicles more accessible to a wider audience.
Model Q Details
The vehicle, codenamed “Redwood”, will be built on Tesla’s latest vehicle platform and will be 15% smaller than Tesla’s current cheapest offering, the Model 3. Manufacturing costs for the Model Q will also be about half of the low-cost sedan.
The Model Q is expected to be available in both single and dual-motor drive variants with an estimated range of 500 km. This new model will help the company achieve 20-30% year-on-year growth in 2025.
Pricing and Competition
The Model Q will be priced as low as $25,000 after subsidy, making it a significant competitor in the affordable EV market. In comparison, the current cheapest offering from Tesla, the Model 3, starts at $42,490 without incentives.
Tesla’s Strategy
During the company’s third-quarter earnings, Tesla announced that it is preparing to launch new vehicles, including more affordable models, starting in the first half of 2025. These vehicles will utilize aspects of the next-generation platform as well as aspects of the current platforms, enabling the company to produce them on the same manufacturing lines as the current vehicle lineup.
Conclusion
The launch of the Tesla Model Q is a significant step towards making electric vehicles more accessible to a wider audience. With its affordable price tag and estimated range of 500 km, the Model Q is expected to be a game-changer in the EV market.