Deutsche Bank analysts recently reported meeting with Tesla’s Head of Investor Relations, Travis Axelrod, where discussions revealed plans for a new vehicle dubbed the “Model Q.” According to the bank’s analyst Edison Yu, this more affordable Tesla model is slated for launch in the first half of 2025, with pricing expected below $30,000 after subsidies, or approximately $37,499 without U.S. EV tax credits.
The report also indicated Tesla’s intentions to introduce a
long-wheelbase, three-row Model Y specifically for the Chinese market. Both vehicles are expected to utilize existing production lines and contribute to a 20-30% volume increase in 2025.
This development follows earlier statements from CEO Elon Musk during Tesla’s third-quarter 2024 earnings call, where he confirmed upcoming “affordable models” would drive similar growth percentages. Musk specifically mentioned a “$30,000 threshold” with incentives, but his messaging became less clear when addressing questions about a $25,000 non-robotaxi vehicle.
During the earnings call, Musk dismissed the concept of a conventional $25,000 model as “pointless” and “silly,” emphasizing the company’s focus on autonomous vehicles. This apparent contradiction has raised eyebrows among industry observers.
The Deutsche Bank report has met with significant skepticism online. Electrek’s Fred Lambert questioned the credibility of such information being revealed through a bank meeting rather than through official Tesla channels. Reddit users on r/RealTesla expressed similar doubts, with some suggesting the news might be market manipulation.
This development comes at a crucial time for Tesla, as recent data from Cox Automotive and Kelley Blue Book shows the company’s EV market share remaining below 50% for the second consecutive quarter, settling at 48.2% in Q3 2024. The company faces increasing competition from traditional automakers offering attractive alternatives.
For instance, General Motors’ Chevrolet Equinox EV has positioned itself as a more affordable option than Tesla’s Model Y, with a price tag of $33,600 (or $26,100 after federal tax credits). Honda’s Prologue has also gained traction, with owners citing its
straightforward design and attractive lease deals as key selling points.
The timing of these developments follows Tesla’s “We, Robot” event held on October 10 at the Warner Brothers backlot in Burbank, California, where Musk unveiled the Robotaxi, an autonomous vehicle featuring butterfly doors but no traditional controls like pedals or steering wheel. Prior to Tesla’s third-quarter earnings release, retail investors had shown significant interest in the company’s plans for more affordable vehicles through an anonymous Q&A forum.
As Tesla navigates these developments, the company faces mounting pressure from both established automakers and emerging EV
manufacturers. The discussion around the “Model Q” reflects broader industry tensions between traditional vehicle manufacturing and autonomous transportation solutions, as well as Tesla’s ongoing efforts to maintain its market leadership while expanding into more accessible price points.
The contrasting messages about affordable models versus autonomous vehicles, combined with skepticism about the Deutsche Bank report, highlight the complex challenges Tesla faces in communicating its future product strategy while maintaining its position in an increasingly competitive EV market.