Tesla has announced that an “affordable” vehicle is coming soon, but what it will be exactly remains a mystery.
“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025,” Tesla’s first-quarter earnings report, which was released on April 22, 2025, says.
However, according to Inside EVs, it is not clear yet “what its affordable option will be,” and rumors “have swirled whether it would be a stripped-down Model Y, or some new vehicle based on the underpinnings of the upcoming Cybercab product.”
That announcement came despite a report on April 18 by Reuters which indicated the affordable vehicle option might be delayed and is expected to be a version of the Model Y.
The announcement comes as Tesla’s stock price has dropped dramatically along with its revenue.
According to Inside EVs, CFO Vaibhav Taneja said that the production of the more affordable model is “still planned for June.”
Tesla also announced in the earnings report that it is moving ahead aggressively with expansion into the humanoid robot and robotaxi markets.
Reuters has indicated that the new affordable vehicle might be called the Model A, Model 2, or Model Q.
“As guided, switchover of production lines for the New Model Y resulted in several weeks of lost production,” Tesla also wrote in its earnings report. “During the switchover, we also prepared our factories for the launch of new models later this year. Given economic uncertainty resulting from changing trade policy, more affordable options are as critical as ever.”
