Tesla Teases Affordable New Model: Rumored June Production Start

Tesla fans and electric vehicle (EV) enthusiasts are buzzing with anticipation as the company prepares to launch production of a new, more affordable model this month. The automaker, known for its innovative battery technology and autonomous driving features, has confirmed plans to begin manufacturing a cost-effective vehicle in June 2025, potentially priced under $30,000 USD after federal incentives. This development, detailed in a recent Forbes article, signals a significant shift toward accessible EVs, sparking interest among owners and industry watchers alike.

Production Timeline and Model Details

Tesla’s Chief Financial Officer Vaibhav Taneja confirmed the production start during the first-quarter earnings conference call on April 22, 2025, stating, “We’re still focused on bringing cheaper models to market soon. The start of production is still planned for June.”

While speculation initially pointed to the long-rumored “Model 2” priced around $25,000 USD, a June 2 Reuters report claimed that CEO Elon Musk canceled that project; to which he had originally responded in April 2024 stating that, “Reuters is lying.”

Instead, VP Vehicle Engineering Lars Moravy revealed that the new models “will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one.”

Industry observers suggest this could be a stripped-down variant of the Model Y, with recent sightings of a camo-wrapped Model Y at Tesla’s Fremont, California, factory showing different proportions—possibly shorter or more compact. This aligns with a less radical design approach, leveraging existing platforms to cut costs, a strategy that could appeal to budget-conscious EV buyers.

Technological and Economic Impact

The new model promises to incorporate Tesla’s latest manufacturing innovations, aiming to reduce production costs without sacrificing core features like autonomous capability and Full Self-Driving (FSD) compliance. Economically, a sub-$30,000 USD price point could expand Tesla’s market, potentially boosting sales by millions annually and challenging traditional automakers in the U.S. market.

The timing also coincides with the rollout of Tesla’s unsupervised Robotaxi service, set to hit roads in Austin this June. Musk told CNBC, “We have thousands of cars that are being tested,” with initial deployment starting small but aiming for 1,000 units within a few months, expanding to cities like San Francisco and Los Angeles. This dual launch could position Tesla as a leader in both affordable EVs and autonomous driving.

Implications for EV Owners and the Industry

For EV owners, the new model offers a chance to enter Tesla’s ecosystem at a lower cost, with potential savings enhanced by federal tax credits. The focus on existing platform adaptations suggests a practical approach, avoiding the delays that plagued the Model 2. Although it has already been noted by Moravy, that production ramp “might be a little slower than we had hoped initially.”

Industry-wide, this could pressure competitors to accelerate their own affordable EV plans, reshaping market dynamics. As Tesla balances these developments, the June unveilings—potentially including the Cybercab—could redefine accessibility in the EV space. Enthusiasts and professionals alike will watch closely to see how Tesla delivers on its promise of affordable innovation.

Photo courtesy of X.