Pricing for the Tesla Model 3 and Model Y kicks off at $44,130 and $50,630, offering solid value when factoring in their impressive electric range, engaging dynamics, and intuitive tech. Despite this, Tesla has long teased a budget-friendly EV. After whispers that the so-called Model 2 had been shelved, fresh reports from InsideEVs confirm a new entry-level model is officially launching this June.
Tesla’s first-quarter earnings call brought the news straight from CFO Vaibhav Taneja: production for the lower-cost EV begins in June. That’s an unusually fast timeline for a yet-unveiled car, but Tesla claims it began prepping production lines while updating tooling for the facelifted 2025 Model Y, allowing it to streamline both efforts without delaying output.
Details remain scarce, but indications suggest the new EV might not be a clean-sheet design. Instead, Tesla appears to be crafting a pared-down version of the Model Y using current factory setups. Hitting a sub-$30,000 target—possibly including federal tax incentives—means heavy use of existing infrastructure and shared components to keep costs manageable.
During the call, Lars Moravy, VP of vehicle engineering, hinted that upcoming models will closely resemble Tesla’s current lineup. He emphasized the design constraints of existing platforms, implying that these new vehicles are essentially simplified versions of current offerings. Notably, his use of “models” in plural hints that both Model 3 and Model Y could spawn affordable spin-offs.
Despite a June production kickoff, Tesla cautions that ramping up will take time. Deliveries may trickle out at first before scaling later in the year. With Q1 profits plunging 71% year-over-year, a wallet-friendly Tesla could be a strategic lifeline—drawing in price-conscious buyers while strengthening the brand’s mass-market footprint.
