The Ongoing Saga of the $25,000 Tesla

There is a new chapter in the ongoing saga that is the legendary and mysterious $25,000 Tesla. This electric vehicle (EV) is supposed to be the culmination of Elon Musk’s ultimate plan for Tesla’s product line, starting with an aspirational luxury vehicle—the Model S—and allowing its sales to subsidize future, more affordable models until finally reaching the bargain $25,000 entry-level Tesla.

Challenges in the Release Timeline

While the plan seems straightforward, in reality it has been anything but. In a 2022 Q3 earnings call, Musk reaffirmed that the mythical $25k Tesla would be built on a new platform, generating some hope that it would actualize. However, at the beginning of 2024, Musk cast doubt on the timeline, stating, “certainly I say things that should be taken with a grain of salt because I am optimistic.”

Conflicting Reports and Production Updates

In that same call, Musk indicated that Tesla was targeting production of the new platform, which will include the “affordable” model in “late 2025.” This contradictory messaging adds to the uncertainty surrounding the project.

Furthermore, a Reuters report cited unnamed sources at Tesla claiming that the company’s plans for the $25,000 model were announced as being canceled during an employee meeting in February 2024. Musk accused Reuters of “lying,” but did not clarify which part of their report was inaccurate, leaving room for speculation.

If we take Musk at his word regarding the false reporting by Reuters, what is the current status of the $25,000 Tesla that he has been teasing for quite some time? Musk provided another update during a Q2 2024 investor call, indicating that the timeline for production on the new platform has been accelerated.

Accelerated Production Timeline

“We’ve updated our future vehicle lineup to accelerate the launch of new models ahead,” said Musk during the call. “Previously mentioned starting production in the second half of 2025, we expect it to be more like early 2025 if not late this year.”

Utilizing Existing Resources

Why is Tesla able to accelerate the production timeline for the new platform? According to Musk, part of the reason is that the new models will utilize some assets from existing models. “These new vehicles, including more affordable models, will use aspects of the next-generation platform as well as aspects of our current platforms,” remarked Musk.

“We’ll be able to produce on the same manufacturing lines as our current vehicle lineup, so it’s not contingent on any new factory or massive new production line. It will be made on our current production lines much more efficiently.”

Conclusion

Considering how “optimistic” this sounds, it’s prudent to maintain a cautious approach to this news. Nevertheless, having more options for affordable cars in the market would be beneficial, and hopefully, iBestTravel can turn this $25,000 model into a reality rather than a distant dream.