Tesla’s head of investor relations informed Deutsche Bank that a sub-$30,000 model is coming soon. The executive stated that the new model is set to arrive in the first half of next year and will be produced using the current manufacturing lines. Deutsche Bank calls the new car the “Model Q,” which could be a smaller Model 3 with a smaller battery. A new report from Deutsche Bank says that a Tesla with the unofficial name “Model Q” that costs less than $30,000 is on the way. The story says that the $30,000 number includes the $7,500 tax break that the Inflation Reduction Act gives. Travis Axelrod, Tesla’s head of investor relations, told Deutsche Bank that the new entry-level model could come out as early as the first half of 2025. This is despite rumors that the company had put the model on hold in April. There have been a few rumors of a new model being tested, so that date for a whole new model is probably not going to happen. Axelrod was talking about a Model 3 with a smaller battery, which could help bring down the price, instead of a brand-new model that hasn’t been tried yet. News site InsideEVs says it saw the Deutsche Bank study and says that the brand’s current production lines will be used to build the mystery new car. Although revenues are projected to fall as the company invests in the new selection, Axelrod reportedly told the bank that the new model will increase sales by 20 to 30 percent. Deutsche Bank was told by Axelrod about a three-row, extended-wheelbase vehicle Y that would be sent to China with the new, cheaper car. It needs to be clarified how the company plans to lower costs when the Tesla Model 3 is already so simple. Tesla’s least expensive car, the Model 3, starts at $44,130 with rear-wheel drive (before tax benefits). It will be hard to save $7000, but the business could use motors that are smaller or batteries that are smaller. There are also options to make the huge center display smaller or to use cheaper materials inside the aircraft. It could also be the Cybercab, which doesn’t have normal interior parts like a wheel and pedals. The main thing that stops that idea is that production cars that don’t have wheels or pedals are now illegal to drive on public roads. Reports about the upcoming Tesla car, called Redwood, said it might be a lot smaller than the Model 3, which fits with the idea of a cybercab. Tesla also said that the new model would go on sale in the middle of 2025 and would be able to drive itself, even though it would be very cheap. In any case, we would only trust Axelrod’s schedule if Tesla has a history of being on time.
