Tesla's Affordable Model Now in Production

Tesla is manufacturing a new model, but it is not available for viewing at this time.

Elon Musk stated during the automaker’s second-quarter earnings call that what is being referred to as a“more affordable” Teslais currently in pilot production.

Official images and information have not been made public yet, but camouflaged prototypes that have been observed during testing indicate that it is closely inspired by the Model Y.

Would you like to access more unique racing material? Follow American Cars and Racing on MSN.

Musk and other Tesla executives mentioned that production would increase during the third quarter and achieve significant levels by the end of the year, although they did not specify when it would be announced or when shipments would commence.

The most affordable vehicle offered by Tesla in the United States right now is the $42,490 Model 3, which is eligible for a federal tax credit that reduces the cost to $34,490. However, this incentive will expire on September 30th. Earlier last year, Musk mentioned that the base model would be priced below $30,000, but only if the incentive was applied, meaning the actual price could go up to $37,499.

Tesla introduced an affordable version of the Model 3 in Mexico in 2024, featuring fabric seating instead of leather, omitting heated seats, rear cabin vents, multiple soundproof glass panels, and removing a few speakers along with other amenities to lower the cost, yet it remains essentially a Model 3.

Tesla also mentioned that the two-seater Cybercab, which lacks a steering wheel and will be part of its ride-hailing Robotaxi fleet, is still expected to begin limited production later this year, with increased output planned for 2026. The Cybercab is a completely new vehicle, according to Tesla, and utilizes a distinctive low-cost manufacturing method.

The Robotaxi serviceCurrently functions in a small part of Austin, Texas, but Tesla intends to grow to additional cities in the near future. Musk mentioned that he thinks it might serve regions covering half of the U.S. population if regulations permit. Just a few U.S. cities, such as Austin, San Francisco, and Phoenix, currently have fully self-driving taxi services running.

Click here to sign up for the free American Cars and Racing newsletter to get the latest updates

Musk also mentioned that the self-driving technology, which allows the Robotaxi to function without a human operator overseeing its performance, might become available in consumer vehicles by the end of 2025.

Would you like to view more unique racing material similar to this? Subscribe to American Cars and Racing on MSN.

Related Headlines

Read Also