Tesla: close to the precipice, Elon Musk finally announces the production of an electric vehicle at low prices
Tesla announces the production of a new model at a reduced price. © Shutershock
Tesla finally promises an electric car at less than $ 30,000, ready to come into production by June 2025. A strategic announcement to revive sales, while its world deliveries are declining despite growth in the electric vehicle market. But behind this promise are still hiding gray areas: new platform or simple declination Model y ?
An affordable model from June: Tesla’s ultimate bet to restart the machine
A Tesla Model 2 concept. © Rights reserved
Tesla is lacking in momentum. The Californian manufacturer, formerly Master of the tempo in the electric, accuses a blow of soft. His catastrophic financial results of the first quarter of 2025 confirmed it : Deliveries decrease, the competition gets worsened, and the craze is weakening. On this slippery terrain, Elon Musk plays an essential card: a more accessible model, promised at less than $ 30,000.
This model, whose name remains a mystery – some evoke a simplified model, others a product derived from the future Cybercab-, will come into production from June. The surprise is big, especially after persistent rumors of a postponement. Even investors doubted respect for the calendar. However, during the quarterly call to investors, Vaibhav Taneja, financial director, confirmed: production will start well on time.
As expected, the change in production lines for the new model has led to several weeks of production loss. During this transition, we also prepared our factories for the launch of new models later this year. Given the economic uncertainty arising from the evolution of commercial policies, more affordable options are as crucial as ever.
The key to this tight timing lies in the industrial organization. Tesla took advantage of the updating of its production lines for the new Model Y in order to prepare in parallel the assembly of this future affordable model. Result: no major retalding to be expected. An industrial agility which should make it possible to take the course, even if Lars Moravy, vice-president of vehicle engineering, remains cautious. Ramp-up will be slow, he warns, in a car market shaken by trade policies and economic instability.
The Tesla Model y restyled, “base” of the future inexpensive tesla? © Numériques
But what form will this inexpensive Tesla take? Moravy suggests that it will be more of a simplified variation of current models than a completely new vehicle. The constraints of existing production lines impose this pragmatic approach. A lightened, refined model, but without sacrificing the quality promised by Tesla – according to the engineer.
For the firm, the stake is colossal. The American electric vehicle market is progressing (+11.4 %), but Tesla fell back (-13 %). The brand knows that a simple refreshment will not be enough: innovation should be there. Enough to regain confidence? The answer will arrive this summer, whileElon Musk announced that he was going to withdraw from Doge to refocus on Tesla.
