Tesla said it would start making its cheaper EV by June. It’s keeping quiet about the mysterious project — here’s what we know.

Tesla could really use the affordable EV it’s been promising, but the timeline keeps slipping.

As recently as April, Tesla said it would begin production of its mysterious new “affordable” EVs in the first half of 2025. But the deadline came and went on Tuesday with no word, and Wednesday saw the automaker report its second consecutive year-over-year decline in deliveries.

When Tesla announced similarly bad delivery numbers in April, an analyst told Business Insider it made making an affordable EV even more crucial.

In addition to brand damage from CEO Elon Musk’s political interventions, Tesla faces pressure from cheaper rivals in China like BYD, and rising competition from Western manufacturers expanding their EV lineups, like Cadillac.

A more affordably priced model is all the more compelling as the automaker simultaneously grapples with an overall slowdown in EV adoption.

Musk first mentioned launching a cheap EV in 2020, but since then, concrete details on what the car might actually look like, and when it might be coming, have been scant. Here’s what’s been said about the long-awaited model:

September 2020

“We’re confident that long term, we can design and manufacture a compelling $25,000 electric vehicle” — Elon Musk

At Tesla’s “Battery Day” presentation, Musk said he was confident the company would be able to ship a “fully autonomous” $25,000 electric car “about three years from now,” adding that such a vehicle had “always been our dream.”

January 2022

“We’re not currently working on the $25,000 car. At some point we will, but we have enough on our plate right now, too much on our plate frankly,” — Elon Musk

Asked about the status of the $25,000 EV in an investor call in 2022, Musk said Tesla’s affordable electric car had taken a back seat to other projects.

January 2024

“They should be taken with a grain of salt, since I’m often optimistic,” — Elon Musk

In a January 2024 earnings call, Musk said Tesla would start production of a next-generation mass-market EV near the end of 2025, but admitted that he was “often optimistic” regarding timelines.

April 2024

“Tesla has canceled the long-promised inexpensive car that investors have been counting on to drive its growth into a mass-market automaker,” — Reuters

A Reuters report, citing anonymous sources, said it had seen internal messages and notes from meetings about the project being scrapped. Musk quickly fired back, denying the report in a post on his X.

“Reuters is lying (again),” — Elon Musk

Reuters said at the time that Tesla had not responded to a request for comment, and noted Musk had not shared any specific inaccuracies about the story.

“If you have a great product at a great price, the sales will be excellent,” — Elon Musk

After Tesla’s stock price dropped following the Reuters report, the company said in an investor call later in April that it would accelerate plans for more affordable models. Musk said they could go into production in late 2024 or early 2025.

October 2024

“I think having a regular $25,000 model is pointless. It would be silly. It would be completely at odds with what we believe,” — Elon Musk.

Asked about when Tesla investors could expect a “$25,000 non-robotaxi regular car model” in an earnings call, Musk made it clear that Tesla was going all in on robotaxis and autonomous vehicles.

January 2025

“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025,” — Tesla.

After a glitzy robotaxi launch in October fell flat with shareholders, Tesla stuck to Musk’s timeline but provided no further details about the automaker’s affordable models in its January 2025 earnings report.

April 2025

“Global production of the lower-cost Model Y, internally codenamed E41, is expected to begin in the United States,” — Reuters.

Reuters reported that the planned affordable model would be a stripped-down version of Tesla’s best-selling Model Y, and that production had been delayed by several months. It cited three sources “with knowledge of the matter.”

The company did not respond to a request for comment on the reported delay.

“As with all launches, we’re working through the last-minute issues that pop up,” — Lars Moravy.

During its Q1 earnings call, Tesla reiterated that production of the affordable models would start in the first half of the year and said it had retooled its factories to prepare to launch the new models.

Tesla’s vehicle engineering VP, Lars Moravy, said the production ramp might be “a little slower” than the company had previously hoped, but added Tesla still expected to meet the deadline.

July 2025

Tesla did not respond to a request for comment on the status of the company’s affordable models.

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