Everything We Know About Tesla's Next-Gen Car: The More Affordable Model
During the Q4 2024 Earnings Call, Elon Musk confirmed that Tesla’s next-generation affordable vehicle is set to launch in the first half of 2025. Now, more than three months into 2025, Tesla may be just a few months away from unveiling their next-gen model.
Surprisingly, details remain scarce—no major leaks, early sightings, or concrete reveals. That hasn’t stopped speculation, though.
Project Redwood
Internally, Tesla refers to the project as Project Redwood, while externally, fans and skeptics alike have dubbed it the Model Q or Model 2. A Chinese tech outlet leaked some details back in December, suggesting a vehicle sized somewhere between a MINI and a Model 3.
That estimate aligns with expectations for Tesla’s compact, mass-market EV, but many questions remain. Where will Tesla build it? Will it share parts with other models? And when will customers finally get their hands on it?
We have some ideas on how to answer these questions—and more. Some of this information comes from past Tesla events, such as the “We, Robot” autonomy event and previous earnings calls.
As always, we’ll cite sources where possible and point out where we’re making informed guesses or speculating.
Based on the Cybercab
Tesla plans to build the Cybercab and the next-generation vehicle at Giga Texas. Initially, both were slated for production at Giga Mexico, but with increased tariffs under the new administration, those plans fell through. As a result, the two vehicles will likely be built side by side, making it essential for Tesla to share as many components as possible.
Just as the Model 3 and Model Y, as well as the Model S and Model X, share numerous parts, the next-gen vehicle is expected to have a significant overlap with the Cybercab. Both are designed for inner-city travel and built with affordability in mind.
However, this doesn’t necessarily mean the next-gen vehicle will resemble the Cybercab. Instead, it will likely use similar components, such as a single lower-horsepower rear motor, a smaller battery pack, and a more compact frame. By streamlining parts production, Tesla can drive down costs to make both the Cybercab and the next-gen vehicle financially viable.
Premium Feel
Lars Moravy, Tesla’s VP of Engineering, recently appeared on the Ride the Lightning podcast, where he discussed the upcoming next-generation affordable model and Tesla’s broader goals.
One key objective is ensuring that every Tesla product feels like a premium purchase—delivering more value than its price suggests. To achieve this, Tesla has been exploring new materials and innovative combinations to improve durability, design, and overall build quality, with the next-gen affordable vehicle being no exception.
Paint-Impregnated Panels
The Cybercab is using unique paint-impregnated plastic panels for its body shell—designed to be easy to produce, customize, and replace. The best part is that nicks and scratches are far less noticeable since the paint runs through the material. This makes repairs and replacements quick and hassle-free in case of accidental damage.
While the Cybercab will only come in the gold color we’ve seen, Tesla is expected to offer multiple variants and color options for the next-gen model. Given how striking the Cybercab’s base color already looks, there’s a strong potential for new finishes and textures unlike anything seen before.
City-Range
At the We, Robot event, Tesla shared additional details about the Cybercab, and we used that information to estimate its battery size. Based on our findings, we estimate the battery pack to be between 51.6vkWh and 74.6vkWh, which would give the Cybercab an estimated range of 220 to 270 miles, assuming it achieves the 5.5 miles per kWh Tesla mentioned.
Tesla also confirmed during the Q3 2024 Earnings Call that the Cybercab will feature a more power-efficient powertrain, improving its efficiency over current models. This powertrain is likely to be shared with the next-gen model, meaning it will also see a lower miles per kW metric.
Wireless Charging
We don’t believe that Tesla will produce the next-gen model with wireless charging, like the Cybercab. Implementing wireless charging is expensive, and currently, the Cybercab is the only known vehicle capable of using it. The Cybertruck has the necessary receivers, but the feature hasn’t been implemented yet, but may be available as a retrofit.
Tesla has already said they plan to roll out wireless charging at select V4 Superchargers in the future, but these will likely be aimed at the Cybercab and Tesla’s other flagship models. This means that the upcoming Model S and Model X refresh could include wireless charging, but it may remain exclusive to higher-end models before trickling down to the rest of the lineup, due to cost.
Price
Tesla’s next-gen model has often been referred to as the “$25,000” model, however, we need to understand that was more than four years ago. Tesla has been mum on the price point of the vehicle, except for the $25k price tag that was shared back in 2021.
Tesla’s offers a cheaper RWD Model 3 in Mexico for about $37,500 USD that removes certain features such as heated and cooled seats and leather, and Tesla is expected to manufacture a new Model Y that costs 20% less to produce in the future.
We believe Tesla will launch its next-gen vehicle for about $30k before any incentives. Once you account for gas savings and potential incentives, this car could sway a lot of customers due to price alone.
Release Date
Tesla previously hinted at a special event tied to its latest referral rewards system, which we believe may coincide with the unveiling of the next-gen affordable model.
With just a couple months left until until the midway point of 2025, it may not be long before we find out more details about this lower-cost vehicle.
We’re excited to cover the event in person, so if you’re considering buying a Tesla, don’t forget to check out our referral codes.
