Affordable ‘Tesla Model Q’ expected to feature in company's Apr 22 update (2025)

Last Updated On: April 11, 2025 12:17 PM. Original article by: Shrawan Raja

Tesla has revealed that it will conduct a “live company update and question and answer webcast” after posting its Q1 2025 results on April 22. During this “Q1 Company Update,” we expect Tesla to offer new details about the future affordable car, which the internet has dubbed the ‘Tesla Model Q.’

Tesla’s Chief Financial Officer Vaibhav Taneja confirmed on January 29, 2025, that its affordable car remains scheduled for a market launch in the first half of 2025. This timeline aligns with Tesla’s Q1 update, setting the stage for additional information.

Franz von Holzhausen, Tesla’s Chief Designer, shared insights on the affordable model during his appearance on the “Ride The Lightning” podcast on March 5, 2025. He emphasized that the entry-level product aims to deliver a “more premium” experience than expected for its segment, addressing the common criticism of inexpensive vehicles typically associated with “cheap plastic.”

Von Holzhausen subtly hinted that buyers can expect more value and space in the entry-level Tesla than competitors. Speaking of which, General Motors is readying the next-gen Bolt EUV for MY2026, while the Kia EV3, and the next-gen Jeep Renegade EV have also been confirmed for the U.S., set to be priced between $30,000-$35,000.

And so we’re always looking to design a way around ideas that can make the products feel more premium, I guess, is a good way to talk about it, than the price point that you pay for it. And I feel like we’ve continued that recipe into some of these said products that are coming along.

Franz von Holzhausen, design chief of Tesla, speaking about the upcoming affordable car to Ryan McCaffrey on the “Ride The Lightning” podcast on March 5, 2025

Tesla’s Master Plan 3, published in April 2023, indicated the compact Model Q would likely utilize 53 kWh lithium iron phosphate (LFP) batteries. While these batteries are cheaper than nickel-manganese-cobalt (NMC) batteries, they come with less energy density, suggesting a slightly lower driving range compared to the Model 3. Nevertheless, commercializing LFP batteries on a large scale is crucial in hitting the Model Q’s price target.

Combining components from Tesla’s next-generation platform with aspects of its current architecture will allow the Model Q to be assembled alongside existing models such as the Model Y. This flexibility in manufacturing was officially confirmed in Tesla’s Q4 2024 financial presentation.

The utilization of current production lines reduces investment and time to market, and the Model Q could be made either in Fremont, California, or Austin, Texas, for the U.S. market. Without having to retool completely, Tesla could produce its entry-level product for the global markets at its facilities in Germany and China which currently make the Model 3 and Model Y.

Considering Tesla’s 13% year-over-year delivery drop in Q1 2025, amid rising competition globally and political controversies surrounding CEO Elon Musk, the launch of the Model Q (or whatever Tesla christens it) should help put attention back on the company’s goal of driving EV adoption in the U.S. market.

Featured image: TopElectricSUV’s illustration of the affordable Tesla car