Sales and earnings of Tesla in Q2 estimated in line with predictions, initial production of new electric vehicles initiated
Tesla to Launch Affordable Model Y in Q4 2025
Tesla is set to introduce a more affordable version of its Model Y SUV in the fourth quarter (Q4) of 2025, according to a quarterly report. Production is expected to begin in the third quarter (Q3) of 2025, with official sales starting in Q4.
The new model will be smaller and stripped down compared to the current Model Y, measuring between 4.4m and 4.6m in length, shorter than the current 4.8m Model Y. The cost-saving design adjustments include a solid metal roof instead of a panoramic glass roof, cloth seats without ventilation, and simpler lighting without the updated Model Y's light bars.
Tesla aims to price this affordable Model Y significantly lower, with estimates suggesting a base price around $36,000 before incentives, making it Tesla's cheapest EV yet.
In addition to the affordable Model Y, Tesla is also planning a smaller, affordable Model 3 variant for 2025. However, the primary focus is on the Model Y variant for Q4 2025.
There have been rumours of a Tesla "Model 2" priced at $9,475, but this appears to be a separate, more distant release and is not the same vehicle as the Q4 2025 affordable Model Y.
Tesla's strategy aligns with its aim to expand its vehicle offering with cost-effective options while phasing in these models alongside existing higher-end versions.
Analysts had previously forecast 39 cents per share on average for Tesla's Q2 2025 earnings. However, Tesla's Q2 2025 revenue is down around 12% compared to the expected $21.9 billion. The Q2 2025 earnings per share dropped by around 23% compared to Q1 2024, to 40 cents per share. Bloomberg reported a consensus forecast of 42 cents for Tesla's Q2 2025 earnings.
The report does not contain a concrete forecast for electric vehicle sales this year. The topic of the new models may be revisited in the Q2 conference, starting at 11:30 PM CET on Wednesday.
No official details on whether any of the new models will have a compact format have been released. Deutsche Bank had previously reported on a coming Tesla model called the Model Q, but the name was their own and not official. Tesla had promised a "return to growth" in 2025 but has not repeated this after Q1. The article does not contain any information about Tesla's production milestones, Musk vs. Trump, FSD data, or megawatt charging.
- The industry anticipates the launch of Tesla's affordable Model Y SUV in Q4 2025, with production commencing in Q3 of the same year.
- Tesla plans to price the affordable Model Y at around $36,000 before incentives, making it their cheapest electric vehicle yet.
- In addition to the affordable Model Y, Tesla also intends to introduce a smaller, more affordable Model 3 variant in 2025.
- The technology sector, particularly the automotive industry and finance, will closely monitor Tesla's pricing strategies and sales figures for the new models, as they could influence the wider electric-vehicle and lifestyle market.
