Franz von Holzhausen, Tesla’s Chief Designer, spoke about the company’s upcoming budget EV (unofficially christened the ‘Tesla Model Q‘) among a raft of other topics on the Ride The Lightning podcast, published March 2, 2025 (we highly recommend that you listen). While he wouldn’t give out the specifics, he spoke about the design philosophy and intentions behind the affordable model.
Von Holzhausen said Tesla wants every product to feel worth more than its price: “I think we want you to feel like you’ve gotten the upgrade, even though you didn’t pay for it.” The highly awaited upcoming model is expected to face off with the next-gen Chevrolet Bolt EUV.

The design chief dismissed the idea that affordability means lower quality. “Sometimes there’s this idea that more affordable equals cheap—cheap plastic, cheap whatever. That’s never been our intention,” he told host Ryan McCaffrey.
Tesla wants the Model Q (unofficial moniker) to also feel more premium than its price suggests. Von Holzhausen said the company is finding design solutions that enhance the experience without raising costs. “We’re always looking to design a way around ideas that can make the products feel more premium than the price point you pay for,” he added.

Unlike other launches, Tesla is faced with the challenge of balancing affordability, range, and its brand identity with its next car. Von Holzhausen said that the company will pay attention to offering better value and space than the price suggests, maintaining this approach across its models.
Tesla will introduce its most affordable car by June 2025. Chief Financial Officer Vaibhav Taneja confirmed on the Q4 earnings call, held on January 29, 2025, “We are still on track to launch a more affordable model in the first half of 2025.” Tesla’s Q4 and Full Year 2024 Financial Results report highlighted that the car will use components or modules of the next-gen platform, but will be built on existing production lines, like the Model 3 and Model Y.

Speculation about the Model 2/Model Q’s specifications has been rife since Tesla’s April 2023 ‘Master Plan 3’ document. It suggested a compact EV with a 53 kWh lithium iron phosphate (LFP) battery. LFP cells are cheaper but bulkier than nickel-manganese-cobalt (NMC) batteries, which could mean a more modest range. LFP will keep costs down and set the Model Q apart from pricier models, delivering around 250 miles of range.
Also See: 2025 Tesla Model Y: 17 Confirmed Changes/Improvements that you should know about
Featured image: TopElectricSUV’s illustration of the affordable Tesla car.

