Tesla's Q2 earnings and vehicle production align with estimates, marking the production of the company's initial electric cars
Tesla to Launch Affordable Electric Vehicles in Late 2025
Tesla is set to expand its electric vehicle (EV) offerings with the launch of more affordable models, scheduled for the second half of 2025 [1][2][4][5]. The company has already produced the initial builds of these models, with mass production planned for the later part of the year.
The upcoming models are expected to be stripped-down versions of the existing Model 3 and Model Y platforms. The more affordable Model Y could retail around $36,000, a 20% decrease from the current Model Y Rear-Wheel Drive price of about $44,990 [5]. Another model, often referred to as the Tesla "Model 2," is speculated to launch in Q3 2025, with a base Rear-Wheel Drive version starting at around $16,990 and an All-Wheel Drive variant [3].
The affordable Model Y is expected to be a pared-down version of the current Model Y, lacking some premium features such as a panoramic glass roof, premium audio system, rear touchscreen, ventilated and power-folding seats, and possibly advanced Autopilot capabilities [4]. The "Model 2" or smaller affordable model is noted to have a solid metal roof instead of a panoramic glass roof, cloth seats without ventilation, no light bars like the updated Model Y, and a more compact size (about 4.4m to 4.6m in length), targeting city driving and affordability rather than luxury [2][3].
Tesla aims for volume production in the second half of 2025, with sales beginning in Q4 2025 [1][2][4][5]. While earlier expectations targeted first-half 2025 releases, delays have pushed the timeline to late 2025 [2]. The Q3 2025 Tesla Shareholder Event (likely in November) is anticipated as a key date for unveiling details or launching the affordable model officially [3].
It is important to note that the impact of changed trade and tariff policies, as well as the exact sales figures for 2025, remain difficult to predict [6]. Analysts had predicted an average of $0.39 per share for Q2 2025, with Bloomberg reporting a consensus forecast of $0.42. However, Tesla's adjusted earnings per share for Q2 2025 were $0.40, a 23% drop compared to Q1 2024 [7].
No official details on the new models' names have been released, with speculation surrounding the Model Q [8]. The Q2 conference discussing the new model is scheduled to start at 11:30 PM CET on Wednesday, where the topic may be discussed again [9]. A new outlook for 2025 will follow after Q2 [10].
Sources: [1] https://www.tesla.com/ [2] https://www.electrek.co/ [3] https://www.motor1.com/ [4] https://www.cnet.com/ [5] https://www.bloomberg.com/ [6] https://www.reuters.com/ [7] https://www.nasdaq.com/ [8] https://www.deutschebank.com/ [9] https://www.tesla.com/investor-relations/events [10] https://www.tesla.com/investor-relations/financial-results/q2-2025
- Tesla plans to launch more affordable electric vehicles, including a budget Model Y and a new model sometimes referred to as the Model 2, in late 2025, aiming for volume production in the second half of the year and sales starting in Q4 2025.
- The upcoming affordable Model Y is expected to be approximately $36,000, a 20% decrease from the current Model Y Rear-Wheel Drive price, while the Model 2 or smaller affordable model is anticipated to have a base Rear-Wheel Drive version starting at around $16,990.
- The affordable Model Y could lack some premium features such as a panoramic glass roof, premium audio system, rear touchscreen, ventilated and power-folding seats, and advanced Autopilot capabilities, while the compact Model 2 is noted to have a solid metal roof, cloth seats without ventilation, and no light bars like the updated Model Y.
- The anticipated Model Q is a subject of speculation regarding the names of the new models, and further details about the new models, including their official names, may be discussed during the Q2 conference scheduled to start at 11:30 PM CET on Wednesday.
