Production of a Tesla vehicle (symbolic image)Image: TeslaSpeculation about a more affordable Tesla model has circulated for years. However, in 2024, the company reportedly shelved plans for a $25,000 ‘Model 2’, shifting its focus instead towards AI, humanoid robotics and the development of the Cybercab.Yet, rumours of a more affordable Tesla have resurfaced. This aligns with the company’s current strategy of gradually withdrawing from the premium vehicle segment. Production of the high-end models Model S and Model X has been discontinued, leaving only the poorly performing Cybertruck in the upper price bracket.Now, news agency Reuters reports that Tesla is once again working on a more affordable model, although the previously discussed price tag of $25,000 no longer seems feasible. Nevertheless, the new vehicle is expected to be cheaper than the Model 3, which starts at around €36,990, and the Model Y, available from a list price of €39,990.According to Reuters, Tesla has been in talks with suppliers in recent weeks about components for an entirely new vehicle. This model is not intended to be merely a variation of the Model Y or Model 3 but a completely independent compact SUV. Its length is said to be 4.28 metres—roughly half a metre shorter than the Model Y.To reduce the vehicle’s weight from the roughly two tonnes of the Model Y to 1.5 tonnes, Reuters’ sources indicate that savings will primarily be made on the battery. This would, however, come at the expense of range, which is stated as 534 km (WLTP) for the base version of the Model Y.The news agency was unable to confirm whether production of the new model has already been approved. If it goes ahead, production is unlikely to start before next year, with Tesla’s plant in Shanghai, China, being the most likely location, according to Reuters’ sources. Production at the German plant in Grünheide or in the USA may also be considered at a later stage.reuters.com