Tesla has confirmed that new “affordable” models are still on track for release in the first half of this year.
Details on how exactly the budget models will take shape aren’t clear yet, but Tesla confirmed the watered-down new models will utilise aspects of its current and next generation platforms in its 2024 Q4 investor report.
Production will also take place on pre-existing production lines, suggesting that previous speculation of a stripped-back Model 3, and potentially Model Y, was correct.
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That is likely to translate to a smaller battery pack, along with less standard features on both models.
Tesla has previously floated a 53kWh battery pack over the current model 3 and Y’s 60kWh unit.
What other features the cars lose in exchange for a lower price tag is unclear. Both models come equipped with power-adjustable, artificial leather upholstered seats with heating and ventilation functions, a panoramic sunroof and 19-inch wheels.
Those features could be walked back as Tesla aims for an estimated price near the USD$25,000 ($40,000) mark, as has been floated by the brand since as far back as 2020 when news of future budget models was first announced.
The investor report went further than just confirmation of budget models, too, adding that a suite of technical features currently employed on the Tesla Cybertruck would make their way onto future vehicles.
That includes steer-by-wire technology, 800V charging infrastructure, 48V electrical architecture, bi-direction charging, rear-wheel steering, laminated windows and adaptive air suspension, just to name a few.
Given that future affordable models are expected to receive fewer features, not more, it is probably safe to assume that these will be bypassed on any future budget Teslas.
We could see them on a future Tesla Roadster, which remains in the brand’s product plans despite lengthy delays.
The first Roadster concept, a second-generation model of Tesla’s very first electric car, was unveiled all the way back in 2017 with a huge 200kWh battery pack, 1000km of range and a claimed zero-100km/h sprint time of just 1.8 seconds.
Full-scale production has been delayed for years, with long-suffering deposit holders, some of which have put forward up to USD$50,000 ($80,000), receiving no respite today.
The announcements today came as Tesla CEO, Elon Musk, heralded 2025 as the “biggest year in Tesla history”, with concerns over the brand's first-ever annual delivery decline in 2024 and mounting pressure from Chinese electric car brands unfolding in the background.
Tesla stock fell around 4.0 per cent in after hours trading.
