Tesla announces sub-$30,000 Model Q launch for next year: Report

Tesla has reportedly announced plans to launch a new vehicle, the Model Q, during an investor meeting with Deutsche Bank. The announcement was made by Tesla’s Head of Investor Relations, Travis Axelrod, and revealed that the Model Q will be introduced in the first half of next year. The vehicle is expected to be priced below $30,000 in the United States after subsidies, with a potential base price as low as $25,000. In China, it is anticipated to cost approximately 218,000 CNY or lower if produced locally.

Internally codenamed “Redwood,” the Model Q will be built on Tesla’s latest vehicle platform. It will be 15% smaller and 30% lighter than the Tesla Model 3, with an overall length of approximately 3,988 mm. The production costs for the Model Q are expected to be about half of the Model 3’s costs, contributing to its affordability.

The Model Q will feature a lithium iron phosphate battery, available in 53 kWh and 75 kWh capacities, offering single and dual-motor drive variants. The estimated range for the vehicle is approximately 500 kilometers. While there is no confirmation of whether the car will launch simultaneously in China and other markets, locally produced models in China may start at around 140,000 CNY if manufactured at Tesla’s Shanghai Gigafactory.

The Model Q is expected to compete directly with the Volkswagen ID.3 and BYD Dolphin, two models that are popular in China, with combined monthly sales of approximately 20,000 units. Tesla aims to achieve 20-30% year-on-year growth in 2025 with the introduction of this vehicle.

The announcement follows Tesla’s recent year-end promotion for the Model 3, which currently starts at 231,900 CNY after a 10,000 CNY discount. Additionally, Tesla is planning to introduce a facelifted version of the Model Y, codenamed Juniper, which will include significant design updates.

If successful, the Model Q will become Tesla’s most affordable vehicle to date and will occupy the sub-200,000 CNY market segment, priced higher than the BYD Seagull but competitive against the Volkswagen ID.3.