Tesla CEO Elon Musk announced plans to release a budget model of an electric car, which will be similar in design to Model Y. About informs Business Insider.
“It’s just Model Y. Let the cat out of the bag. A cat that can talk, sing and dance. It’s the coolest“, – said Musk.
While he did not elaborate on the specifications or launch date of the new model, Tesla’s vice president of automotive development, Lars Morawi, said the company expects to make the new car “available to everyone” in the fourth quarter of 2025. Musk also noted that the “biggest obstacle” to the spread of electric cars is the insufficient financial capacity of buyers.
“Literally, that’s the problem. It’s not a lack of desire, it’s a lack of opportunity. So the more affordable we can make the car, the better.” – he emphasized.
Musk also emphasized that the introduction of self-learning functions in new models will help make them more affordable. He is convinced that starting next year Tesla owners, at least in the United States, will be able to rent out their cars, receiving additional income. According to him, by the end of this year, Tesla cars will work in the mode of full autonomous driving without driver control in a number of US cities, and in 2026 – “probably everywhere” in North America.
As a reminder, Model Y was first presented in 2020. Tesla began selling the updated version of this model in January in China, the United States, Canada, the United Kingdom, and continental Europe. In 2023, the Model Y became the most popular car in the world, although it later lost ground to Chinese competitors. According to Tesla analysts, entering the market of a cheaper electric car will allow the company to strengthen its position in competition with Chinese manufacturers of budget electric cars.
