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💡 Tesla is preparing a budget electric car: launch in late 2025

Tesla has officially confirmed plans to release a more affordable electric car, which will go on sale in the fourth quarter of 2025. This was announced during the presentation of financial results for the second quarter. Instead of a separate model, which many expected (it was conditionally called Model 2), the company will most likely simplify the existing Model Y and release it in a basic configuration at a significantly reduced price.

The cost of the new version, according to sources, will start at about $ 36,000 - this is almost 20% cheaper than the current basic Model Y. This step makes the electric car more accessible to a wider audience, especially considering possible subsidies in the United States.

Production of test copies started in June 2025, and large-scale production is scheduled for the fall. Tesla is already reconfiguring production lines to prepare for demand for the budget version.

What will be changed to reduce the price? Presumably, many elements will be simplified: the interior will have fabric seats and no decorative lighting, the audio system will be basic, and the seat adjustment will be mechanical. It is also assumed that a less expensive lithium-iron-phosphate battery will be used (this type is already used in some Model 3 and Y in China) and a simpler electric motor.

Tesla is not only betting on price. The simplified Model Y will support FSD (Full Self-Driving, fully autonomous driving), and in the future, it will also participate in the Robotaxi service (owners will be able to "share" the car with other users for a fee when they are not using it themselves - the car will fulfill orders on its own). In theory, this should reduce the "real" cost of ownership - that is, the car will not only drive, but also earn money.

This approach allows Tesla to save time and resources: instead of creating a new platform from scratch, the company uses a proven design and adapts it to the market.