Tesla Compact.

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This new photo is supposedly showing the future Tesla compact model outside the Berlin factory in Germany.

We, of course, all know Tesla has been working on a smaller, cheaper all-new model based on an equally new platform. The new model will be much cheaper to produce and the expected base price is $25,000. Although for some reason, $24,000 has also been mentioned.

The new Mexican factory will be building the new model, but Tesla also mentioned later the Berlin factory would be the first one to produce the new car. This makes sense since a smaller model would be hugely popular in Europe. Later, this new compact model would be built in Mexico, China, and even in a new factory in India.

It is widely expected to quickly become Tesla’s most popular model once production ramps up. Elon Musk has previously described the new car as ” it will blow people’s minds”, of course… Also stating the demand for the new car could be as high as 4 million per year. Which is basically 3 times the current world’s best seller and pretty much impossible.

He also described the new car’s design as “more utilitarian”. Which sounds pretty bad, but most of the time, he’s just saying anything.

The photo above shows a design that is obviously inspired by the Model 3 and Model Y. But it also appears much smaller than the Model Y next to it. Of course, this is a super blurry photo taken with a long lens so who really knows? It could also be completely fake.

If it is real, it seems the new smaller Tesla could basically look a lot like a smaller Model Y. The new model is scheduled for the second half of 2025. I am not sure if that’s the date for the introduction or the start of production. Which will take quite a while to ramp up.

No matter what, a smaller and much cheaper Tesla will be huge news and a big threat to all current EV manufacturers, who are still struggling to make a profit on their electric models.

I actually can’t wait for this. It should be fun…

Conversation 7 comments

  1. ‘Also stating the demand for the new car could be as high as 4 million per year. Which is basically 3 times the current world’s best seller and pretty much impossible.’

    Currently the model Y is the world’s best seller, a car that costs twice as much. I don’t find it impossible to think a smaller Tesla can sell 4 times as much.

  2. Musk farts and there’s always a few schmucks there to lick up the bits that came out with it. Of those I know that own them, they’re either bonkers-poser fanatics or completely let down by the Tesla ownership experience. There’s no middle ground and its about half and half. I believe it’ll only take two things to throw Tesla down: 1. Chinese entry to the US market undercutting Tesla on price (and crappy build/reliability) and 2. a current auto brand making a reliable, supported, well built EV with similar range and performance for the price a PHEV (not you, Hyundai-Kia-Genesis). And, the sooner someone cuts the money pipeline out from under Musk, the better.

  3. Tesla will be introducing a $25,000 EV? Not a chance (at least, not in the U.S.) The number of ICE vehicles still priced at $25k is already dwindling. How is Tesla going to do an electric vehicle at that price??

  4. 20 bucks says within three years, Musk will have…
    1. closed the Fremont CA factory after having relocated the HQ and technical dev center to Austin TX area.
    2. boosted Chinese factory output for Europe, prior to reducing output at Berlin.
    3. opened Mexico for NA, prior to reducing output at Austin, saving Austin for the high priced models (S, Cyber-rust, X). The new model, Model3 and ModelY will all go to Mexico.

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