Tesla’s 2025 Q1 quarterly update didn’t offer a full picture on the ‘affordable models’ that the company has been talking about since last year, but it is emerging that these cars may not be largely different from Tesla’s current sedan and crossover.
Familiar Form & Affordable Price
When asked about the design and details of its affordable vehicles, Lars Moravy, VP of Vehicle Engineering at Tesla, confirmed that the shape of these vehicles will resemble the Model 3 and Model Y:
And so, the models that come out in next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And here the key is that they’ll be affordable, and you’ll be able to buy one.
Lars Moravy, Vice President – Vehicle Engineering at Tesla, during the Q1 2025 Earnings Call on April 22, 2025
To the same question, Tesla’s CFO, Vaibhav Taneja, said there were limitations on what is possible with the current production lines:
There’s always limitations when you’re using existing lines as to how many different form factors can you bring to. So that’s the way I would say you should think about it.
Vaibhav Taneja, Chief Financial Officer at Tesla, during the Q1 2025 Earnings Call on April 22, 2025
What Could Change?
Given our experience with the new Model 3 and Model Y variants, the base versions may come with a smaller touchscreen and limited software functionality. Features such as the rear touchscreen, ventilated and power-folding seats, glass roof, premium sound system, and advanced Autopilot are unlikely to be included.
Tesla may also simplify the exterior design by offering fewer trims and paint options, and using smaller wheels. Sound insulation could be reduced as well. The visual differentiation could come from simpler lights, bumpers and badges.
Capacity Utilization & Ownership Cost
Moravy confirmed during the call that an important reason for doing the affordable models was full capacity utilization. As the new vehicles would be built on existing production lines, Tesla can scale without big investments. That said, the upcoming models will combine elements from current and next-gen platforms. For the new launches, Tesla is prioritizing low monthly payments to make ownership more accessible, especially amid economic uncertainty and current global trade conditions.
Release Date
As per the Q1 2025 shareholder deck that was released following the call, Tesla’s more affordable models are still on track to enter production in the first half of 2025. In the earnings call, Moravy confirmed that while the ramp may be slower than initially planned for these cars, there are no major blockers. The company has already switched over production lines, which caused some short-term disruption but also allowed preparations for the new models to begin.
An automobile engineer by training, I’ve analyzed the global car market since 2005, with a keen focus on EVs since 2008. My journey in online automotive publishing spans 17 years, during which I have reviewed cutting-edge automotive technologies and interviewed leading global CEOs and vehicle developers.
