Tesla Model Q Could Be Tesla’s “Affordable” EV After All

Tesla’s on-again/off-again effort to develop an affordable EV may be on again, at least according to a report by Deutsche Bank. It issued a new report claiming the automaker will launch a new vehicle that could come in under $30,000 in the U.S. — at least with the help of federal tax credits, though those may go underway when the Trump administration returns to the White House next year.

Perhaps he simply wants to keep the competition off balance, but Tesla CEO Elon Musk has repeatedly reversed course when it comes to launching a low-cost EV and may be doing that again with a product one key source dubbed the Model Q.

Currently, it costs more than $40,000 for a base version of the Tesla Model 3 sedan and Musk earlier this year derided as “foolish” any effort by his company to bring in an EV at a lower price. Not that Tesla hasn’t tried. It’s made several efforts to come up with something less expensive; however, Musk told analysts during an earnings call the program had been abandoned.

Maybe not, it seems. A new report by Deutsche Bank suggests that the Texas-based EV maker could release a new model next year that would come in at “less than [USD] $30,000 with subsidies, or $37,499 if Trump cancels the IRA tax credit.”

What is Model Q?

The German banking giant is referring to the new low-cost Tesla as the “Model Q,” though there is no indication that this would be the actual name were Tesla really to put it into production. In the past, sources have suggested Tesla might be working up an affordable model that it would call the Model 2 — but, again, Musk and company never released a formal name, nor any internal codename, for such efforts.

According to Deutsche Bank’s report, the Model Q will use an existing Tesla platform but come in about 15% smaller than the current Model 3 sedan. And it would weigh about 30% less. That would suggest the expanded use of new construction methods, such as aluminum megacasting, as well as a smaller battery pack.

Considering today’s SUV-focused market, another sedan seems unlikely, and Tesla is apparently focused on a crossover or hatchback body style.

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Tough competition

Today’s typical EV costs nearly $60,000, according to J.D. Power, Kelley Blue Book and other analysts. That’s about $10,000 more than the typical vehicle overall. And it’s a key reason, observers stress, why the growth of the EV market has slowed so much this past year.

Tesla wouldn’t be the only automaker targeting a lower-price segment in a bid to kick-start demand, however. There are a growing number of vehicles coming in below $40,000 — before factoring in federal tax credits. The new Volvo EX30, for example, starts at $36,245.

The Chevrolet Equinox EV carries a starting price of $33,600 with the introduction of the new, base-level LT FWD trim. And GM is getting ready to reintroduce the Chevy Bolt EV nameplate. The second-generation model is expected to start at or under $30,000 — before the federal tax credits that could go away with the Trump administration.

Ford recently scuttled plans for costly 3-row electric SUVs and is shifting focus to new entry-level EV product lines.

When is it coming?

The report from Deutsche Bank suggests the Tesla Model Q — or whatever it might actually be called — could arrive during the first half of 2025. But that would likely just mark the unveiling of such a new low-cost product line. Historically, the automaker has then taken several years to actually bring any new offering into production.

It might wind up rolling off the assembly line about the same time as the new Tesla CyberCab — which is destined for service in a new fleet of robotaxis — is scheduled to go into production in 2026.