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’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.

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.

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.”

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 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.

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