Tesla continues to work on a 100% electric low-cost model, which may partly reverse the trend of declining sales for the American electric vehicle brand.
The long-awaited and mysterious cheaper model from Tesla will not be a new model after all, but rather a new version of the Model Y. The announcement was made by Elon Musk, CEO of Tesla, during the video conference of earnings presentation.
“It’s just a Model Y”, Musk said in response to a question from an analyst about the appearance of the new low-cost vehicle. “Come on, let’s reveal the secret.”
Tesla began “initial production” of the vehicle in June and expects to start mass production in the second half of 2025, the company announced in a statement.
“We continue to expand our vehicle offering, including the first units of a more affordable model in June, with volume production planned for the second half of 2025”, Tesla said.
During the results presentation, Lars Moravy, vice president of engineering at Tesla, indicated that the production of the model will not increase significantly until the end of the year, having added that the company “will continue to invest heavily in the current models to avoid complexity” in the third quarter, considering that the incentives for purchasing electric vehicles in the U.S. will end on September 30. In this way, Moravy confirmed that the low-cost model will be “available to everyone” in the fourth quarter.
