Low-priced “baby” Tesla Model Y will arrive in 2025, research firm announces

The smaller, more affordable Model Y will arrive in the U.S. in 2025, according to an automotive intelligence company.

This follows a series of comments from Tesla executives about an “affordable” model arriving in 2025. Just recently, during the company’s third-quarter earnings call in October, CEO Elon Musk said, “We’re still on track to offer an affordable model starting in 2025.” said. First half of 2025. ” Musk said much the same thing during the second quarter conference call. And recent reports suggest that the lower-priced Model Q, which goes on sale in the first half of 2025, will cost less than $30,000 with the federal EV tax credit, and $37,500 without the credit. are. Tesla is expected to refresh its existing Model Y next year, similar to the Model 3 refresh late last year.

“Baby Y”

Sam Fiorani, an analyst at Autoforecast Solutions in Chester Springs, Pennsylvania, said, “The Baby Y, a lower-cost Model Y model, will be launched in late 2025 alongside the larger Model Y model. We are planning to start production.” Fiorani added that Baby Y will be produced in the United States. “Tesla’s low-cost crossover is designed to fill the space below the $45,000 Model Y,” he said. “Depending on how much money you can afford, the new model could rival the latest Chevrolet Bolt EUV for entry-level EV buyers.” Tesla did not respond to a request for comment. .

Currently (as of mid-December), a rear-wheel-drive Model Y costs about $37,500 including the $7,500 federal tax credit and about $45,000 without the credit.

Tesla’s low-cost manufacturing movement

Tesla is working to reduce production costs to win the EV race. “In the third quarter alone, we reached our lowest cost per vehicle,” Tesla Chief Financial Officer Vaibhav Taneja said during a third-quarter earnings conference in October.

And CEO Elon Musk said (on the same conference call) that a manufacturing reset is coming with CyberCab. “What’s remarkable about the CyberCab is that it’s not just an innovation in vehicle design, but also a revolution in vehicle manufacturing that the CyberCab brings,” Musk said.

In fact, Tesla has an edge over its competitors in this area. “Tesla is the only profitable automaker in the EV space, selling cars 40 times faster than second-place General Motors,” AutoForecast Solutions said in a December report.

But Tesla needs to offer a wider variety of EVs if it is to continue as a giant. General Motors plans to introduce a large number of new EVs to the market in 2025. These include the Chevrolet Blazer EV, Chevrolet Equinox EV, Cadillac Lyric, Cadillac Escalade IQ, and Cadillac Optique. The new Chevrolet Bolt, GM’s best-selling EV to date, is also expected to arrive sometime in 2025.