Despite rumors suggesting Tesla might abandon its plans for new vehicles, the company’s actually ramping up production of multiple new models throughout 2025. Tesla produced its first builds of more affordable electric cars in June 2025, with volume production scheduled for the second half of the year.
Tesla’s ramping up production of multiple new affordable models throughout 2025, with volume production starting this year.
The company’s developing stripped-down versions of its Model 3 and Model Y platforms to create cheaper options for buyers. Tesla says its new vehicle plans remain on track, meeting initial production timelines in the first half of 2025.
The much-anticipated Model 2 is currently in its testing phase, which typically takes 12 to 18 months before consumer release. Tesla’s planning limited pre-production at its Texas factory in the third quarter of 2025, with 10,000 to 20,000 initial vehicles. Mass production and global deliveries won’t begin until the first quarter of 2026. The company’s targeting between 300,000 and 500,000 units in the first year.
The Model 2 will feature a 54 kWh battery providing 250 to 300 miles of range. Its lighter design helps achieve this efficiency. The vehicle incorporates solid-state battery technology that allows 80% charging in under 15 minutes while significantly reducing fire risk. The Gigafactory Texas spans over 10 million square feet and could manufacture up to 500,000 Model 2 units yearly.
Tesla’s implementing AI-driven robotic systems and new production methods designed to deliver 2 million units annually. The company’s revolutionary unboxed production method builds modular subassemblies in parallel, reducing production line length by over 40%. Pricing remains a key focus for Tesla’s mass-market strategy. The Model 2’s expected to cost around $22,000 to $25,000 after subsidies, though some estimates suggest it could start at $15,637. However, the $7,500 tax credit might be eliminated by new 2026 legislation.
Tesla’s also expanding its current lineup. The company’s introducing two additional Model Y variants during 2025, including a new Performance variant and a seven-seat configuration. They’ve already launched a rear-wheel-drive Model Y as an entry-level option. Tesla is also diversifying into energy products with its Solar Roof installation requiring full roof replacement but offering 25-year warranties.
Beyond affordable models, Tesla’s planning facelifts for the Model S and Model X in 2025. The company’s pursuing a full lineup refresh across all vehicle lines while maintaining quality standards despite lower price points.
Reservations for the Model 2 should open in the fourth quarter of 2025, with priority access for existing Tesla customers.