When Are Cheap Tesla Cars Hitting The Market? It Could Be 2025

For those curious about getting an electric vehicle, costs can be an important consideration. While electric vehicles have typically been more expensive than fuel powered ones, car brands have increasingly released more affordable options in the last several years. Plus, tax incentives, credits, and rebates have made the possibility of purchasing either a hybrid or fully electric vehicle far more financially feasible for many U.S. consumers. However, there is one particularly famous electric vehicle maker that has remained out of reach for many car buyers.

For fans of Tesla, or even just those looking for more affordable electric vehicle options, the ongoing rumors of a low-cost Tesla model being released has felt like a tease that might never become reality. Despite Tesla executives promising more affordable options in the future, so far the company has failed to release any low-cost model. In fact, in early 2024 Tesla's CEO, Elon Musk, cancelled the pilot production of the company's planned Model 2. This model, which was intended to cost just $25,000, was meant to help introduce the brand to more consumers via a lower price point. This left many wondering if Tesla would ever follow through on its promise of a more affordable car. However, despite the delays and missteps, a cheaper electric vehicle from Tesla could soon be hitting the car market, and sooner than you might think. In fact, two affordable Tesla models could be hitting the market as early as the first half of 2025.

Tesla's low-cost model, unofficially dubbed the Model Q (but internally referred to as Redwood), was announced during an investor meeting with Deutsche Bank, according to Globalchinaev. The model is expected to debut below $30,000, possibly even starting as low as Tesla' original Model 2 price point of $25,000. The company also previously told investors to expect a lower overall growth rate in 2024 as the company focused on affordable vehicle production. While the specifics of the Model Q are still largely unknown, it is said to be roughly 15% smaller and 30% lighter than Tesla's existing Model 3. Financially, the Model Q is also said to cost roughly half what it costs to manufacture a Model 3.

As for the Model Y, Tesla fans are probably aware that the Model Y already exists. The new form of the Model Y, nicknamed "The 'Baby Y," is supposedly going to begin production in late 2025 alongside the standard (bigger) Model Y. According to an analyst at AutoForecast Solutions, as reported by Forbes, "Tesla's lower-priced crossover is designed to fill the space below the $45,000 Model Y. Depending on how much cost they can get out of it, the new model could rival the updated Chevrolet Bolt EUV for those entry-level EV buyers." However, it's worth noting that as Tesla attempts to make room for new models, they have been offering significant discounts on their Model Y cars. As of February 2025, the cheapest Model Y type (long range rear-wheel drive) retails for just $31,490.

There can be additional costs to owning a Tesla that fall outside the listed website price. Electric vehicles generally have higher upfront costs than fuel vehicles, which can be a shock to new buyers. Plus, hopeful Tesla owners also need to factor in the actual charger for their vehicle. These chargers can vary in price (and also vary depending on the model you purchase) and also require installation somewhere on your property. Installing the necessary connection to charge your Tesla can cost a considerable amount depending on your geographic market and exactly what electrical work might be necessary to make a charging station possible. With that in mind, if you live in an apartment, or are a renter, you might instead have to rely on Tesla Supercharger charging stations rather than having your own at-home unit. This can add to your costs, and potentially damper your convenience.

Keep in mind that the cost to charge a Tesla can also vary depending on your utilities (and how much you are charged per kilowatt), although most studies comparing costs have found that charging costs tend to be less than equivalent fuel costs would be (even when paying more to use a Supercharger station). Plus, according to a 2024 survey from Consumer Reports, Tesla owners actually reported the lowest maintenance and repair costs both in the 1-to-5-year repair costs category and in the 10-year repair cost category by brand.