As Tesla prepares to refresh its popular Model Y, CEO Elon Musk has announced plans to launch a more affordable electric vehicle (EV) by 2025. This new model, expected to significantly impact the EV market, is generating excitement among consumers and analysts.
The Model Y, Tesla’s best-selling EV and a leader in the global market, is set to celebrate its fifth anniversary. Its updated version, internally named “Juniper,” is expected to feature design enhancements, including a redesigned hood, headlights, and taillights. Improved interior comfort and advanced battery technology are also anticipated.
Musk has hinted at the launch of an affordable Tesla model several times. During Tesla’s Q3 earnings call in October, he announced, “We aim to launch a cost-effective model in the first half of 2025.” Although the name is yet to be revealed, analysts refer to it as “Model 2.” The model is expected to serve not only individual buyers but also Tesla’s autonomous robotaxi project.
With a projected price near $30,000, the new Tesla will compete with conventional vehicles. However, the potential removal of federal tax credits could impact EV affordability. Musk noted this would hurt competitors more than Tesla, though analysts warn it could slow U.S. EV market growth.
