New Report Offers Specs & Price for Tesla's Upcoming Next-Gen Model

A concept of Tesla's 'Model Q'

@DominicBRNKMN on X

At the 2023 Q3 Earnings Call, Tesla provided an update on its next-generation model, what many are referring to as the “Model 2” or “Model Q.” Although the actual model name is yet to be determined, it is known internally as Redwood.

During the 2024 Shareholder Meeting, Musk again mentioned the upcoming model, saying that Tesla is working on new products, including a more affordable vehicle and a larger SUV.

While we know the next-gen vehicle is aimed at the $25k to $30k USD market, we now have some new information thanks to a new report out of China.

Launch & Price

According to the Chinese outlet CNMO Technology News (Sina Finance), Travis Axelrod, Tesla’s Head of Investor Relations, announced plans to launch a new model. Axelrod shared this update while addressing senior corporate investors at an investor conference hosted by Deutsche Bank on December 5, 2024.

The goal of Project Redwood, internally dubbed “Model Q” by Deutsche Bank, is to achieve a post-subsidy price of under $30,000 USD. With the Federal EV Rebate potentially expiring next year, this suggests that the Model Q’s starting price will be around $30,000 USD. For comparison, the Model 3 currently starts at $42,490 in the U.S.

We previously reported that Tesla has already been speaking to suppliers and is looking to begin volume production of the vehicle sometime around June 2025. Of course, prototyping is still necessary, but we haven’t seen any signs of Tesla testing a new vehicle since spotting the Cybercab on the streets ahead of We, Robot.

Specs

The Model Q will supposedly be about 15% smaller and 30% lighter than the Model 3, with an approximate length of 3,988mm, or 157 inches. For scale, the Mini is 157 inches, while the Model 3 is 185 inches, so it’s fairly compact.

The battery will also be smaller to match the vehicle’s smaller size as Tesla tries to reduce the vehicle’s price while maintaining a similar range as its other vehicles. Tesla is expected to offer two models—a single-motor RWD model and a Long-Range Dual-Motor AWD variant.

The lower trim level will include a 53 kWh lithium iron phosphate (LFP) battery, while the AWD version is expected to include a 75 kWh LFP battery. The report says that the vehicle will be able to travel up to 500 km (310 miles) on a single charge, but it’s not clear whether this will be for the more efficient RWD version or the AWD variant.

Given the vehicle’s weight reduction compared to the Model 3, this type of range is likely for the lower trim level.

There’s no news yet on the price of the AWD version, but we expect it to be about $5,000 more expensive than the RWD variant.

Once the vehicle ramps up in production, Tesla intends to produce about 10,000 of these per week globally or about 500,000 per year. As Tesla mentioned during one of their previous earnings calls, this next-gen vehicle will be built using Tesla’s current assembly lines with minimal changes. This should allow for a smoother and more predictable production ramp. While Tesla still plans to use its new unboxed assembly process, it’s now saving it for the robotaxi.

Project Juniper

One of the items that came up during the investor conference was Tesla’s Project Juniper—the Model Y refresh. Juniper has already had a few leaks, including some images and information that mention a return to the 7-seat, 3-row format—at least in China. 

We’re expecting Juniper to launch early next year, as production has supposedly already begun at Giga Shanghai, at least on a limited prototyping basis. If the rollout matches the Model 3 Highland refresh, we’ll see Juniper arrive in China first and then make its way to North America and Europe by the end of 2025. The performance variants should launch in early 2026, after the standard models.

If you’re excited about Juniper, so are we! Check out our wishlist of features for Tesla’s Model Y refresh, and see everything we know so far.

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NHTSA to Streamline Approvals for Control-Free Vehicles Like Tesla’s Cybercab

Not a Tesla App

In a letter to industry, the National Highway Traffic Safety Administration (NHTSA) has announced that it is overhauling its approvals process for vehicles designed without human controls.

The change addresses a regulatory bottleneck that has slowed down American companies like Tesla from deploying purpose-built Robotaxis, rather than relying on using traditional vehicles with steering wheels and pedals. The policy shift is outlined in a letter posted to the NHTSA’s website, which you can find here.

Reducing Approvals From Years to Months

Under the existing rules today, any vehicle that is built without a steering wheel or brake pedals must receive a special exemption from federal safety standards.

Obtaining exemptions for a particular vehicle was a time-consuming process for both the companies requesting exemptions and the NHTSA. The process was often a black box—nobody knew when an exemption might be granted, and approvals could take years.

The NHTSA, under the new administration’s guidelines for autonomous vehicle development, is now committed to streamlining this process. The agency will be implementing a new, faster approach immediately for receiving exemptions for autonomous vehicles without standard controls. The NHTSA expects decisions on exemption requests to be determined within months rather than years. 

Accelerating the Cybercab

This change has massive implications for Tesla, which is banking on the production of the simplified and easy-to-maintain purpose-built Cybercab. The Cybercab is developed from the ground up as an autonomous Robotaxi and will be one of the key beneficiaries of this move by the NHTSA.

Knowing that a final design won't be caught in a multi-year regulatory limbo provides a level of certainty that has been missing. It allows Tesla to confidently plan the manufacturing, development, and deployment processes without worrying whether the project will get stuck in regulatory approvals.

According to the letter, the agency will publish its improved instructions for the streamlined process "shortly." With Tesla already having begun Cybercab pre-production and the goals for its deployment as soon as late 2026, there’s still a lot to be done to make autonomy a part of Tesla’s new sustainable abundance mission statement.

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You Can Now Track Tesla’s Robotaxi Deployment

Not a Tesla App

Thanks to Tesla Yoda on X, we have found out that Tesla’s Robotaxi fleet is registered on the Texas Department of Transportation’s public-facing Automated Vehicle Deployment website. This makes the fleet’s movements publicly viewable and trackable, and marks a first for Tesla.

This isn’t just any old FSD test - this is the first officially acknowledged, government-tracked, and sanctioned deployment of a Tesla Model Y operating as a ride-share vehicle. But that’s not all - Texas DOT’s tracker notes that the Tesla does not have a safety driver.

View on the Map

Visitors to the Texas DOT website can filter for “Tesla”, and see, currently, a single active vehicle operating in the Austin Metro area. According to the state’s official data, here’s what we know:

Company: Tesla

Description: Ride-share service

Status in Texas: Testing

Safety Driver: No

The final point is definitely the most interesting here. While Tesla has been testing FSD with safety drivers for some time in Austin and LA for employee-only testing, this is the first time that a vehicle has been officially registered and deployed on public roads without a human behind the wheel for safety. 

The fact that there is no safety driver officially shifts the liability from the occupant of the driver’s seat to Tesla, for the first time in a public setting. That’s already pretty significant - we previously dove into how Tesla plans to insure its own vehicles, and potentially owner vehicles in the Robotaxi fleets. 

The status currently lists Tesla as “Testing,” confirming that the service isn’t available to the public, but this is expected to change in the coming weeks.

This testing phase is likely part of a short but crucial period that lets Tesla capture data on the safety levels of its current iteration of Unsupervised FSD without a driver supervising. Tesla already stated that they’d be avoiding difficult areas, so this testing can also expose additional areas Tesla may want to avoid, such as school zones or blind driveways.

Tesla will need to prove, both internally and externally, that FSD Unsupervised has the necessary performance to safely navigate the streets without any incidents.

Regulatory Milestone

For years, the concept of a Tesla Robotaxi has been a future promise. Now, it's a present-day reality, albeit in a testing capacity.

Having an official government body list a Tesla as an active, driverless vehicle shows that they’ve been able to clear regulatory hurdles, which Tesla has often pointed to as the issue. It demonstrates a level of confidence from both Tesla and Texas regulators in the system's capabilities.

While it's just a single vehicle for today, we’ll likely see this list slowly expand over time. Alongside being able to track Robotaxi incidents at the City of Austin’s website, we’ll be able to closely watch Tesla’s progress with its first Robotaxi deployments.

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