Tesla prepares to launch new affordable model this month

In early June 2025, Tesla announced the impending production of a new model, stirring speculation about its specifics, including whether it is a stripped-down version of the Model Y or Model 3. This new vehicle will likely incorporate Tesla's existing platforms, with the aim of providing a more affordable option for consumers. According to Lars Moravy, Vice President of Vehicle Engineering at Tesla, these new models will bear similarities to current ones, emphasizing their affordability and accessibility. Musk has confirmed this initiative amidst the backdrop of the ongoing development of Tesla's autonomous-capable vehicle, which is expected to align with the launch timeline of the new model. Rumors about the new model intensified when a camouflaged Model Y appeared at Tesla’s Fremont, California factory, igniting debates over whether it indicated the readiness of a new stripped-down model or a performance-enhanced version of the Juniper Model Y. Some social media users speculated on the unusual proportions of the test vehicle, suggesting it may feature a more compact design. However, this sighting has not confirmed anything definitive, as previous camouflaged Model Ys have been linked to the performance variant. Tesla's ambitions coincide with the planned deployment of its robotaxi service, which Musk announced would begin in Austin in June. This service, featuring driverless cars similar to Waymo’s offerings, indicates Tesla's forward-thinking strategy to broaden its technological capabilities. Initial deployment will be limited, but Musk has expressed confidence in scaling up the service to 1,000 vehicles within months and potentially expanding into other large cities. As these developments unfold, interest in Tesla’s approach towards affordability and innovation continues to grow. The launch of this new model, described only by its code name E41 and originally anticipated for production earlier this year, has been a subject of speculation, especially in light of the cancellation of the $25,000 Model 2. As the focus shifts towards ensuring that this new vehicle is accessible while leveraging existing designs, Elon Musk has reiterated the company's commitment to making electric vehicles more attainable for an average consumer. This new model is expected to play a key role in Tesla's future offerings.