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Tesla To Build MULTIPLE Low Cost Vehicles Using a Hybrid of Model 3/Y and Next Generation Platform In addition To the "Unboxed" Robotaxi: Ahead of Schedule

Tesla just announced they are going to make multiple low cost vehicles, giving confidence that a Model 2 like vehicle is coming soon, along with the robotaxi.
Tesla To Build MULTIPLE Low Cost Vehicles Using a Hybrid of Model 3/Y and Next Generation Platform In addition To the "Unboxed" Robotaxi: In the Middle of 2025

Multiple Low Cost Vehicles Coming From Tesla - Ahead of Schedule

Tesla has released their downloadable shareholder deck and they said the following:

We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025.

These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up.

This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times. This would help us fully utilize our current expected maximum capacity of close to three million vehicles, enabling more than 50% growth over 2023 production before investing in new manufacturing lines.

Our purpose-built robotaxi product will continue to pursue a revolutionary “unboxed” manufacturing strategy.

There's a lot to unpack here, especially them delivering them before the end of 2025, so let's get right to it with what I think will happen.

First off, there are MULTIPLE new models coming in 2025 - likely in the middle of the year or even sooner, according to Elon Musk. It's possible they could start early in 2025 or at the end of 2024 as he said on the earnings call.

This is significant from those who thought Tesla was only going to build a robotaxi vehicle and delay all other models into 2026. This answers that question.

What are these multiple models that are coming? I think I have an idea, so I'll take a stab at it.

I think Tesla will release the following vehicles:

  • A lower cost compact Model 3
  • A lower cost compact Model Y
  • The "unboxed" built Robotaxi
  • The new Tesla Roadster

Tesla mentioned that these vehicles - the affordable models -  which I assume are a compact 3/Y, will be built using a combination of the Model 3/Y platform and the next generation platform. It's going to be very interesting to see what these vehicles end up looking like and what the specs are.

The advantage of making the compact versions of the Model 3 and Model Y using similar manufacturing to the existing Model 3 and Model Y means that there is familiarity there, and this means they will be built ahead of schedule.

I predict the following on range and price for the Model 3 and Model Y compact:

The compact Model 3 will have a base model only and a range of 250 miles and cost around $25,000. It will be smaller than the Model 3 - likely the size of a Honda Fit.

The compact Model Y will have a base model only and a range of 240 miles and a cost around $27,000. It will be smaller than the Model Y - likely the size of a Honda CRV.

Both will likely use LFP batteries. The performance specs will be slower than the existing Model 3 and Y.

You May Also Like: Tesla Releases The New Model 3 Performance - Ludicrous - And It's Fast - Really Fast - Faster Than A Porsche 911

The Robotaxi Vehicle

The robotaxi vehicle is still going to be built using the "unboxed" strategy, which will enable it to be built fast and in a large quantity. Giga Texas appears to be the location that all of these vehicles will be built, but I would expect Giga Berlin and Giga Shanghai to also follow suit at about the same time or shortly after.

Elon appears to be very confident in FSD and Tesla reaching full autonomy by the end of the year. Certainly, by next year, Tesla is going to reach a level 4 autonomous state if you look at the robotaxi reveal date on 8/8 of this year. Otherwise, why reveal the robotaxi vehicle if FSD isn't close to being solved?

Of course, FSD will always improve over time as billions and billions of human driven data are processed through the neural net and used to train the software.

I predict this vehicle will cost around $30,000 and will be built by Tesla internally for its own fleet.

Tesla is also working on an app, according to their shareholder deck, and this means that autonomy may come sooner for existing Tesla owners than many have thought. You'll be able to add your own Tesla vehicle to the Tesla fleet via the app.

The New Roadster

The New Roadster is likely to have an unveil event this year, as mentioned by Elon. This will end up being the fastest sports car and EV ever made. It should have an option for a SpaceX rocket to bring down the 0 to 60 mph time to around 1.1 seconds.

This will give a second "halo" effect to Tesla, just like the Cybertruck did.

The New Roadster will cost a lot - most likely around $200,000 or more.

For Further Reading: "I'm So Happy That Somebody Has the Resources, the Guts, the Fortitude, To Do It the Right Way... Man, How Lucky Are We!": James Douma on Elon Musk Pushing FSD

What do you think about these new vehicles - is this what Tesla will end up actually doing?

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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

Image Credit: Tesla, Screenshot

Article Reference: Tesla

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