2025 Tesla Model Q (Redwood): Rumours and Everything We Know So Far
Image source: Tesla
Tesla is set to launch its most affordable electric car yet, with the company's Head of Investor Relations confirming to Deutsche Bank that a sub-$30,000 model will arrive in the first half of 2025.
This new model, which sources are referring to as the "Model Q," represents Tesla's most significant move into the mass-market segment and could reshape the affordable EV landscape.
What We Know So Far
According to Deutsche Bank's investor report, Tesla's Head of Investor Relations, Travis Axelrod has confirmed plans for a new entry-level model launching in H1 2025. Unlike previous speculation about an entirely new platform, this vehicle will be built on Tesla's existing production lines, suggesting a modified version of the current Model 3/Y architecture.
The new model, codenamed "Redwood," is designed to be significantly more compact and efficient than Tesla's current offerings, with sources indicating it will be 15% smaller and 30% lighter than the Model 3.
🔥🔥 Tesla is rumored to launch the “Model Q” for under $30K in the first half of 2025!
— Tesla Newswire (@TeslaNewswire) December 9, 2024
Reportedly, new details were shared during an investor meeting with Deutsche Bank, attended by Tesla’s Head of Investor Relations, Travis Axelrod:
✅ Codenamed “Redwood”
✅ Starting at $25K… pic.twitter.com/JRbJgnQSBU
Design and Dimensions
While official images haven't been released, several key details have emerged about the Model Q's physical specifications:
Length: Approximately 3,988mm (15% smaller than Model 3)
Weight: Expected to be 30% lighter than current Tesla models
Design Philosophy: Likely to incorporate elements from Tesla's recent design language, seen in the refreshed Model 3 and upcoming Model Y
Battery and Performance
Multiple sources confirm two battery options will be available:
Base model: 53 kWh LFP battery
Long-range variant: 75 kWh LFP battery
Estimated range: Up to 310 miles (500km)
Drive options: Both RWD and AWD configurations planned
The use of LFP (Lithium Iron Phosphate) batteries suggests Tesla is prioritising cost efficiency while maintaining acceptable range figures for urban and suburban use.
Pricing and Availability UK Market Positioning:
Expected starting price: Under £25,000 (after incentives)
Launch timeline: First half of 2025
Initial production: Will utilise existing manufacturing lines
Image source: Tesla
Pricing and Availability
Tesla's entry into the sub-£25,000 market marks a significant shift in the company's pricing strategy. According to Deutsche Bank's investor report, the Model Q will launch with a starting price under $30,000 (approximately £25,000) after incentives in the US market, suggesting a UK price point that could make it highly competitive in the growing affordable EV segment. This aggressive pricing strategy appears designed to capture a larger market share as more consumers transition to electric vehicles.
Through salary sacrifice schemes like The Electric Car Scheme, this could translate to monthly payments starting from approximately:
Base model: £250-300*
Long-range variant: £300-350* (*Based on a 40% taxpayer, typical lease terms, and current benefit-in-kind rates)
The timing of the launch in the first half of 2025 aligns with Tesla's broader strategy to expand its market presence before traditional manufacturers can fully establish themselves in the electric vehicle space.
By utilising existing production lines rather than building new facilities, Tesla aims to keep costs down while maintaining their established quality standards. This approach should also help avoid the production delays that have affected previous Tesla launches.
I got a copy of the Deutsche Bank report.
— Becky Peterson (@beckpeterson) December 9, 2024
Here's what it does say:
1. @travisraxelrod met with DB for its Autonomous Driving Day on December 5 in NYC.
2. DB describes "the new Tesla model" which it calls "Model Q".
3. DB says it will launch in the first half of 2025, and…
Market Impact
The introduction of the Model Q represents a watershed moment for the electric vehicle market, potentially accelerating the adoption of EVs among mainstream consumers. Tesla's ability to offer a vehicle at this price point, while maintaining its reputation for technology and performance, could fundamentally reshape the competitive landscape. Traditional manufacturers are already adjusting their strategies in anticipation of Tesla's entry into this market segment.
The timing is particularly significant as it coincides with increasing government pressure to phase out internal combustion engines, introduce green car schemes and growing consumer interest in affordable electric vehicles. Tesla's entry into this price segment could force other manufacturers to accelerate their own electric vehicle programs and potentially adjust their pricing strategies to remain competitive.
Looking at the broader market implications, Tesla's move could trigger several industry-wide effects:
Accelerated price competition in the entry-level EV segment
Increased pressure on traditional manufacturers to improve their electric offerings
Greater focus on software and technology integration at lower price points
Potential consolidation among smaller EV manufacturers unable to compete at these price levels
The used car market is also likely to feel the impact, as more affordable new EVs could affect the residual values of existing electric vehicles. This could create additional opportunities for consumers to enter the EV market through both new and used vehicle options, further accelerating the transition to electric mobility.
Expert Perspectives
"This move represents Tesla's most serious attempt to democratise electric vehicles," says Gaurav Ahluwalia, Marketing Director at The Electric Car Scheme.
"The use of existing production lines could help Tesla achieve this aggressive price point while maintaining profitability."
Looking Ahead
While Tesla has historically faced challenges meeting ambitious launch timelines, the confirmation from their Head of IR suggests a serious commitment to this project. The Model Q's success could be crucial for Tesla's growth strategy, potentially opening up a much larger market segment for the brand.
This new model comes at a critical time as traditional manufacturers are increasingly competing in the affordable EV space. Tesla's ability to deliver on its promised price point while maintaining acceptable range and performance could set new standards for entry-level electric vehicles.
Note: While core details have been confirmed by Tesla's Head of IR, some specifications and the "Model Q" name remain unofficial. As with all pre-release information, details may change before the final launch in 2025.
Last updated 10.12.24
