Tesla Inc. TSLA will reportedly launch a new vehicle called Model Q in the first half of next year, priced below $30,000 after subsidies.
What Happened: The vehicle may be priced as low as $25,000 after subsidy, Global China EV reported, citing a Deutsche Bank investor conference by Tesla's Investor Relations head Travis Axelrod.
The vehicle codenamed “Redwood” will be built on Tesla’s latest vehicle platform and will be 15% smaller than Tesla’s cheapest offering Model 3, the report said, while adding that manufacturing costs will also be about half of the low-cost sedan.
The vehicle is expected to help the company achieve 20-30% year-on-year growth in 2025 and will be available in both single and dual-motor drive variants with an estimated range of 500 km, the report added.
Tesla did not immediately respond to Benzinga’s request for comment on the report.
Why It Matters: The Model 3 is Tesla’s current cheapest offering in the U.S. It starts at $42,490 without incentives.
However, during the company’s third-quarter earnings in October, the company said that it is preparing to launch new vehicles, including more affordable models, starting in the first half of 2025.
“These vehicles will utilize aspects of the next-generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up. This approach will result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the company then said.
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