Tesla has announced plans to introduce more affordable electric vehicles (EVs) in the first half of 2025.
The company says these new models will incorporate components from both Tesla’s current and next-generation platforms, allowing production on existing manufacturing lines.
While full details remain under wraps, the move signals Tesla’s push to expand its customer base amid financial headwinds.
New models to undercut Model 3 and Model Y

Pricing hasn’t been officially confirmed, but expectations point to a starting price of around US$30,000 (roughly NZ$54,000).
This would position the new models below the Model 3 'Highland' and recently refreshed Model Y 'Juniper', making them Tesla’s most accessible EVs to date.
Speculation suggests a possible Model Q, though Tesla has yet to confirm specific nameplates or designs.
Tesla’s decision to integrate aspects of its existing platforms rather than building entirely new production lines is a strategic effort to reduce capital expenditure.
However, the company acknowledged that this approach will not achieve cost reductions to the extent initially expected.
Instead, it prioritises increasing production volume in a more financially sustainable manner during economic uncertainty.
Tesla’s self-driving expansion
Alongside its new models, Tesla is set to roll out a paid, unsupervised Full Self-Driving (FSD) service in Austin, Texas, starting in June 2025.
CEO Elon Musk expressed confidence in the system’s safety and hinted at potential expansion to other US cities later in the year.
However, Tesla must first demonstrate the technology’s reliability to regulators before broader deployment.
Financial challenges

Despite its forward-looking strategy, Tesla faces significant financial challenges.
In 2024, the company experienced its first annual sales decline in over a decade, leading to a 71% drop in Q4 net income to US$2.3 billion (NZ$4.1 billion).
Annual net income also fell by 23% to US$8.4 billion (NZ$15.1 billion), down from US$14.1 billion (NZ$25.3 billion) in 2022.
Revenue for 2024 increased slightly to US$97.7 billion (NZ$175.5 billion), reflecting just a 1% year-on-year gain.
Interestingly, this slump comes as the latest Brand Index report ranks Tesla as the world's fourth-most-valuable automaker, trailing Toyota, Mercedes-Benz and Hyundai Group.
Looking ahead
Tesla’s focus on affordability and self-driving technology emphasises its ambition to regain market momentum.
By making EVs more accessible and advancing autonomous driving, the company aims to strengthen its position in an increasingly competitive market. Would you be interested in a more affordable Tesla?