Tesla's most affordable model yet is set to release in the first half of 2025 according to a report from Deutsche Bank. It will be unique from the Robotaxi and will use an existing chassis.

A small, more affordable Model Y is coming to the U.S. in 2025, says an automobile intelligence firm.

Tesla is said to be working on a new compact EV, internally dubbed "Model Q," priced under $30,000 after subsidies. The news came from Travis Axelrod, Tesla's head of investor relations, who spoke at an investor conference hosted by Deutsche Bank earlier this month.

Tesla’s much hyped and cancelled cheaper model is now due to arrive next year, according to reports. A new report from Deutsche Bank said the American electric car company’s head of investor relations Travis Axelrod confirmed the new model will arrive as early as the first half of 2025.

Rumors about a Tesla Model Q, a sub-$30,000 electric car, are emerging in China as the automaker is expected to unveil a few cars early next year. Earlier this year, we reported that Elon Musk had canceled plans for new, cheaper Tesla vehicles built on the new ‘unboxed’ platform, often referred to as “the $25,000 Tesla.”

Tesla is preparing to launch a new Model Q hatchback EV that will launch in the first half of 2025 costing under $30,000 to compete with BYD Dophin, more.

Based on the information then shared by NotaTeslaApp, the vehicle is being designed under the Project Redwood and Model Q monikers and is set to cost under $30,000. In terms of specs, it’s thought that the Model Q will be around 15% smaller and 30% lighter than the popular Model 3 which means that it is definitely not going to be a big vehicle.

While anticipation builds for the Model Y refresh, CEO Elon Musk has repeatedly referenced affordable models coming in 2025 to compete with Chinese EVs. Enter Model Q?

Tesla is developing an affordable model priced under $30,000, which is expected to launch in the first half of 2025.