Tesla announced today it has started production of its long-awaited affordable electric vehicle (EV) models. During its Q2 2025 update, the automaker confirmed that the “first builds” of the new model were completed in June, with plans to ramp up volume production in the second half of this year.
“We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025,” Tesla said.
The company had initially targeted a June launch date for these more affordable models, but as we previously reported, those plans were delayed into Q3.
While Tesla has not shared the name, pricing, or specifications of the vehicle, the company has previously shared they will be a stripped-down version of the Model3 and Model Y, designed to come in at a significantly lower price point than the current lineup.
It is expected the starting prices could be around US$35,000, making it Tesla’s most affordable model since the launch of the original Model 3.
Elon Musk had previously hinted at plans for a sub-US$25,000 Tesla, but those efforts were canceled in early 2024 in favour of leveraging the current Model 3/Y platform and focusing on the dedicated robotaxi platform – Cybercab. The new affordable model is expected to share much of its design with the existing models but with fewer features and materials to bring costs down.
This will allow Tesla to utilize the existing Model 3 and Model Y production lines for these new models, streamlining manufacturing costs.
The company has yet to announce when orders will open, but demand is expected to be high given the success of its entry-level vehicles in the past.
