Expect Tesla to launch a product barrage in 2025 focused on affordability.
Tesla’s appeal to investors increasingly comes through price cuts, cheaper loans and leases. To maintain its dominance in the electric vehicle market, Tesla is planning new vehicles that focus on lower prices from the start.
The refresh of the Model Y seems a sure thing. Likely at the same or slightly lower price than the current Y, now starting at about $37,500 with the federal tax credit. In order to keep prices down for the Model Y — the best selling EV in America — and all of its vehicles, Tesla is on a crusade to reduce costs. “There are numerous work streams within the company to squeeze out cost without compromising on customer experience,” said Vaibhav Taneja, Tesla Chief Financial Officer, in October, adding that Tesla achieved its lowest cost per vehicle in Q3. And CEO Elon Musk has underscored the effort to reduce costs. “The amount of work required to make a lower-cost car is insanely high,” he said in October.
Details of the Model Y Juniper refresh are pretty straightforward since it will mirror the Tesla Model 3 refresh late last year. In fact, just go to the Model 3 landing page to get a preview of key design tweaks, including changes in the body style (front hood, front facia, headlights, taillights), improved aerodynamics, quieter ride, updated interior, and possibly new battery technology. See this story for a detailed list of expected changes.
Tom Libby, an analyst at at S&P Global Mobility, said the Model Y, of any vehicle in Tesla’s lineup, will have the most impact on Tesla’s bottom line in 2025. “If I had to pick one [in 2025], I would say a refreshed Model Y,” he said. The Model Y dwarfs any EV competition in the U.S., outselling the next closest non-Tesla competitor by more than 73,000 vehicles in the third quarter. But Libby believes a too-subtle refresh of the Model Y could “require more incentives to sell.”
While it’s not a certainty, it’s possible that a rear-wheel-drive edition of the Cybertruck will arrive in 2025. Just a few months ago, Tesla was promoting a rear-wheel-drive model for $60,990 (it was dismantled in August). That’s about $19,000 less than the cheapest all-wheel-drive Cybertruck ($79,990) lately on the Cybertruck page. “It’s possible that more affordable editions [of the Cybertruck] can be had just helps to keep the momentum going,” Stephanie Brinley, an analyst at S
Although Musk touted the second- and third-quarter earnings conference calls for the new “affordable” Tesla, no major details were given. However, recent reports point to a new conventional Tesla called Redwood, dubbed the Model Q via Deutsche Bank, which is expected in mid-2025. Exactly what that is is unclear. Is it redwood? Or just a sleek Model 3 or Model Y?Or a new affordable vehicle beyond Redwood?The Q reportedly sells for $30,000, but that includes the $7,500 federal tax credits, which is now in doubt due to objections to the credits by the new Trump administration. On the other hand, recent feedback from AutoForecast Solutions also points to the arrival next year of a more affordable “Bathrough Model Y” compact SUV that would compete in value with the new Chevrolet Bolt, which is expected to arrive in 2025.
On Saturday, Tesla tweeted: “A robotaxi future is closer than you probably think. » But will car buyers listen in 2025? Tesla is shouting from the rooftops about fully self-driving, or FSD, and how it will dominate product launches in the long term. The Model Y, for example, played a major role in the Robotaxi autonomous vehicle event in October. But Cybercab/Robotaxi (pictured above) is the most concrete example of Tesla’s vision for autonomy and this vehicle is not expected before 2026. So will autonomy alone allow more Tesla cars to be sold in 2025? It’s probably not a stretch to say that many car buyers interested in autonomy (this is, in fact, the case in the EV world other than Tesla) either don’t see the immediate benefits, especially if they delight in or hear about of the benefits of the system. limitations or errors in real-world scenarios.
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