New, cheaper Tesla cars expected in 2025

February 4, 2025

Tesla is set to introduce a range of 'more-affordable models' in the first half of this year to drive sales growth. (Car shown above is the current model - new designs below)

Research by 360 Media Group has shown that, despite the business focusing on its pricing strategies, Tesla still sits outside the industry Top 10 when it comes to fleet managers' perceptions of value for money.

In 2024, the company reported its first-ever year-on-year decline in vehicle deliveries, reaching 1.78 million – that's 19,000 fewer than the previous year. This raised concerns over its competitive edge in the hard-fought electric vehicle (EV) market.

The new models aim to increase Tesla’s annual production by over 60% to around three million vehicles. In its latest quarterly update, Tesla confirmed that plans for new vehicles, including lower-cost models, remain on schedule for production in early 2025.

These models will incorporate elements of both the next-generation platform and existing Model 3 and Model Y designs, allowing production on current manufacturing lines. Tesla acknowledged this approach would deliver lower cost reductions than initially planned, but would enable a more efficient expansion in vehicle volumes while keeping capital expenditure in check.

There had been speculation that Tesla would abandon plans for an entry-level EV in favour of focusing on its self-driving 'robotaxi'.

Elon Musk had previously suggested that Tesla aimed to produce a sub-£20,000 ($25,000) car. Tesla also unveiled an updated Model Y with a refreshed front design, influenced by the Cybertruck.