Tesla’s Next Vehicle: A Smaller, Cheaper Model Y?

Tesla may be planning to produce a smaller, more affordable version of Model Y designed for immense scale according to new reports.

The premise behind the next new Tesla model should essentially be a smaller version of Model Y: an electric crossover sharing much of the same features and functionality, built on Tesla’s more cost-effective next-generation vehicle platform.

Cost savings for the new platform will be passed on to consumers in the form of a starting price that could be half of the current starting price of Model Y.

This may be the $25,000 ‘Model 2’-equivalent vehicle that Tesla plans to introduce later this year.

The production goal for the new vehicle will be four-million units per year, with the first production lines being built at the currently-in-construction Gigafactory in Mexico.

Giga Mexico is expected to produce two million units of the new vehicle annually, with the rest of the production at Giga Berlin and Giga Shanghai.

While the new vehicle should likely be unveiled this year, a launch won’t occur until next year at the very earliest.

Real Talk

It makes sense for Tesla to make its ultra-high-volume, affordable vehicle a crossover that takes inspiration from Model Y as it’s quickly become Tesla’s most popular present-day vehicle.

Model Y was built on Model 3’s platform, with the only cues taken from the Model X being those that were a natural virtue of both vehicles sharing an SUV class.

Thus, the resemblance to Model Y may not be quite as strong on the surface — even if we do think that the interior will be strikingly similar.

A plausible hatchback form factor should nonetheless be stylish for its class, and a ~$25,000 starting price would make it Tesla’s top-selling vehicle by a wide margin.

We may have already seen a preview of this new Tesla model earlier this year, bearing a keen resemblance to a Model Y chassis with a hatchback.

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