Tesla has initiated the production of a more affordable electric vehicle, as reported by InsideEVs. This move aims to expand the company`s market reach with a more budget-friendly option.
During a shareholder meeting following the Q2 2025 earnings report, Tesla CEO Elon Musk officially confirmed the existence of this lower-cost EV. He clarified that the vehicle is essentially a new iteration of the Model Y, an electric crossover whose production originally began in 2020.
Musk stated that the assembly of this new Model Y variant commenced in June, with mass production slated for the latter half of 2025. He emphasized Tesla`s ongoing commitment to broadening its vehicle offerings. Lars Moravy, a senior executive at Tesla, indicated that the new electric car is anticipated to be available for sale in the fourth quarter of 2025.
While Tesla has not yet revealed the official pricing for this new model, the current Model Y in the U.S. starts at approximately $44,990 (around 3.6 million rubles). Buyers may also be eligible for a government subsidy of $7,500 (600,000 rubles). Journalists from InsideEVs and Electrek speculate that the more budget-friendly Model Y version could be priced around $35,000 (2.8 million rubles).
Analysts at InsideEVs suggest that launching a relatively inexpensive electric vehicle is a crucial strategy for Tesla to re-accelerate its sales growth, especially in a competitive market.
This initiative comes as Tesla`s second-quarter profit experienced a decline, dropping to $1.172 billion, which represents a 16.3% decrease compared to the same period in the previous year.
Rupert Blackwood 
Barnaby Whitfield