As Tesla prepares for its biggest year of changes yet, VP of Vehicle Engineering Lars Moravy has become the company’s key voice on what’s coming next. At the recent X Takeover 2025 event, Moravy outlined Tesla’s engineering roadmap alongside design chief Franz von Holzhausen. He confirmed that Tesla’s more affordable model will start production in late 2025, with volume manufacturing picking up speed after that. Tesla has already built its first units of this more affordable model as of June 2025, marking an unusual early announcement for the company.
The refreshed Model Y, known as “Juniper,” started production in October 2024 with about 12 vehicles made daily. This conservative start will grow as Tesla prepares for Launch Series deliveries in the UK beginning May 2025. The new Model Y Performance variant coming later in 2025 will deliver over 510 horsepower with faster acceleration than current models. UK prices will range from £44,990 for the base model to £51,990 for the Long Range All-Wheel Drive version.
Moravy’s team has focused on making the Model Y look completely different from the Model 3. The new design features a bold light bar across the front that serves as a daytime running light. The actual headlights now sit low where fog lights used to be, creating an aggressive look. The engineering team also worked on making the car quieter inside while improving its range. The most efficient version achieves 22.36 kWh per 100 miles. Winter drivers should expect range drops of 10-20% in cold weather conditions, with Model 3 range decreasing from over 300 miles to about 240-270 miles.
Tesla’s promised affordable model won’t be an entirely new car. Instead, it’ll be a stripped-down Model Y variant. The company hasn’t met its original $25,000 price goal. Current Model Y Long Range RWD models start at $44,490 before tax credits that expire in September 2025. Tesla discontinued its Chinese-imported LFP battery base model because new tariffs made it too expensive to produce. The refreshed Juniper Model Y will be available in three variants including the base RWD, Long Range AWD, and Performance models.
Looking ahead, Moravy is leading Tesla’s shift to a new “unboxed” manufacturing method starting in 2026. The Cybercab will be the first vehicle built this way. Meanwhile, Tesla’s beginning production of its own LFP battery cells later in 2025, though these will only power stationary storage systems at first. The company’s taking a careful approach to scaling up production while maintaining quality.