Tesla Announces Plans for a More Affordable Entry-Level EV

Tesla is gearing up to launch a new, more affordable electric vehicle this summer. The company has confirmed that it will introduce a basic entry-level model starting in June. However, this new car is expected to be a more basic version of the existing 2025 Model Y SUV, not a completely new model.

Currently, the Tesla Model 3 sedan starts at $44,130, and the Model Y SUV begins at $50,630. These prices are considered reasonable given their impressive electric range, performance, and high-tech infotainment systems.

But Tesla has been working on offering a more budget-friendly option. Last year, rumors circulated that Tesla had canceled plans for a smaller, less expensive Model 2, but the company has now confirmed that it is moving forward with a new affordable model.

During Tesla’s first-quarter earnings call, Chief Financial Officer Vaibhav Taneja shared that production of this new entry-level Tesla will begin in June. Though the car hasn’t been fully revealed yet, Tesla has been preparing its factories to build the new model alongside the refreshed 2025 Model Y.

This indicates that the new car will likely share a lot of parts with the Model Y to keep production costs down.

Tesla has not given many details about the new affordable EV, but it is expected to cost under $30,000. This price may include savings from an EV tax credit.

The company has said that in order to keep costs low, the new vehicle will be built using the same assembly lines as the Model Y. “The models that come out in the next months will resemble in form and shape the cars that we currently make,” said Lars Moravy, Tesla’s VP of vehicle engineering. This suggests the new EV will be a stripped-down version of existing models rather than something entirely different.

While the production of this entry-level EV is set to begin in June, Tesla warned that the ramp-up in production will be slow. This means it might take several months before the new cars are widely available on the roads.

This move comes at a time when Tesla’s profits have been down by 71 percent in the first quarter compared to the same time last year. The company hopes that launching a more affordable EV will help boost sales and bring in more customers.

With its lower price tag, this new entry-level model could play an important role for Tesla as it continues to compete in the growing EV market. Fans and customers will have to wait a few more months to see what this new affordable Tesla will look like when it hits the streets in June.

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