$25K Tesla may not arrive until 2025

tesla model 3
(Image credit: Shutterstock)

We first heard about the $25k Tesla back in mid-2021, with the news that it could arrive sometime in 2023. That isn’t likely to happen, according to Tesla CEO Elon Musk, but one group of analysts think there’s a chance the relatively low-cost car could be unveiled next year instead.

Tesla stock analysts Loup Ventures (via Teslarti (opens in new tab)) are predicting that the cheap Tesla will be unveiled sometime in 2024, ready for production the following year. Of course, this would rely on Tesla not facing any additional setbacks, which have been a common occurrence throughout its history — particularly with the challenges of the past few years.

So far we don’t know very much about the $25K Tesla, least of all what it’ll be called. Loup Ventures, alongside various media outlets, have taken to calling the car the “Model 2” — a name CEO Elon Musk has already refuted (opens in new tab). In fact, we've heard next to nothing about the car since its initial announcement, with Tesla generally leaving us in the dark.

Loup Ventures' prediction suggests that Tesla has to avoid announcing the car too early. They posit that doing so could eat into potential sales of the Tesla Model 3, “while ramping capacity during what is likely to be a broader auto recession." 

We also have to consider that the car isn’t top of Tesla’s list of priorities right now. Last March Elon Musk admitted that Tesla was “not currently working” on the car during an earnings call. He’s also emphasized multiple times that 2023 will be the year of the Cybertruck and the Tesla Roadster — two vehicles that have already seen plenty of delays.

Then there’s all the emphasis on Optimus, a humanoid robot that Musk has been hyping over the course of 2022 — to the point where he claimed the robot would be worth more than Tesla’s car business (opens in new tab). Musk later admitted that the cheap car was on hold, and Optimus was to blame. 

In short, there are a lot of other things that are taking priority before Tesla’s goal of launching a cheaper car can come to fruition

Both Tesla and Musk have emphasized the need for cheaper electric cars, something just about everyone can agree on. Currently EVs tend to swing towards the luxury market, and even those that don’t are noticeably more expensive than gasoline or hybrid alternatives. 

Given Tesla’s position at the top of the electric car business in the United States, offering more low-cost options could push rival automakers to do the same. $25K is still a lot of money, but it would put the car at the top of the list of the cheapest electric cars. This is assuming Tesla can still hit that price point, given its recent slew of price hikes blamed on inflation and supply chain issues.

We’re just going to have to wait and see what happens with this. Hopefully Tesla can clear its backlog of unreleased vehicles this year, and renew its focus on more affordable options. The Tesla Semi has finally gone into production already, and the Cybertruck is expected to hit roads sometime early this year.

Assuming the Roadster can also make it off the production line in the next 12 months, then only Optimus will stand in the $25K model’s way. Here’s hoping, at any rate.

Tom Pritchard
Automotive Editor

Tom is the Tom's Guide's Automotive Editor, which means he can usually be found knee deep in stats the latest and best electric cars, or checking out some sort of driving gadget. It's long way from his days as editor of Gizmodo UK, when pretty much everything was on the table. He’s usually found trying to squeeze another giant Lego set onto the shelf, draining very large cups of coffee, or complaining that Ikea won’t let him buy the stuff he really needs online.