April 28, 2025 – During Tesla’s first-quarter 2025 earnings call, Lars Moravy, the automaker’s vice president of vehicle engineering, dropped hints about the design trajectory of an upcoming affordable model slated for release this year. Moravy emphasized that while the forthcoming vehicle would align aesthetically with Tesla’s existing lineup, its pricing strategy would target a broader, budget-conscious audience.
Earlier this month, drone footage captured at Tesla’s Fremont factory sparked speculation after revealing glimpses of what could be the company’s rumored “budget-friendly” electric vehicle. Codenamed internally as potential candidates like “Model 2” or “Model Q,” the aerial shots only partially unveiled the vehicle’s components and silhouette. Tesla enthusiast and drone operator “Met God in Wilderness,” known for chronicling factory activities, documented an unfinished prototype parked alongside fully assembled Model S and Model Y units on April 17. Notably, the prototype’s roofline appeared narrower than adjacent Model Y crossovers, hinting at a compact crossover-inspired design.
A subsequent April 24 drone flyover captured another cryptic prototype, distinguished by a more sharply raked rear profile—at least judging by the contours of its covered frame. This diverged from the earlier crossover-like prototype, suggesting Tesla might be experimenting with multiple body styles for its affordable lineup.
Tesla’s Q1 2025 update report explicitly confirmed that development of new models, including the budget-focused variant, remained on schedule for a first-half 2025 production launch. Leveraging a hybrid approach, the vehicles will integrate technologies from Tesla’s next-generation platform alongside existing architectures, enabling shared manufacturing processes with current models like the Model Y and Model 3.
Elaborating on the design philosophy during the earnings call, Moravy reiterated that the upcoming models would mirror Tesla’s signature styling and structural frameworks while prioritizing affordability. “These vehicles will roll off our existing production lines, echoing the form and functionality of our current offerings,” Moravy stated. “The breakthrough lies in their pricing—we’re engineering them to democratize access to electric mobility without compromising Tesla’s design DNA.”
As Tesla edges closer to unveiling its most accessible electric vehicle yet, industry analysts are closely monitoring whether the automaker can replicate its luxury-market success in the mass-market segment without diluting its brand cachet.
