Tesla Model Q expected to launch in early 2025: Here's the projected price

Tesla's most affordable model yet is set to release in the first half of 2025 according to a report from Deutsche Bank. It will be unique from the Robotaxi and will use an existing chassis.

A Deutsche Bank report claims that Tesla has plans to release a new model in the first half of 2025 and states the new model will reportedly cost "less than [USD] $30,000 with subsidies, or $37,499 if Trump cancels the IRA tax credit".

The renders included in this article have been created using generative text-to-photo artificial intelligence software for the purposes of creative visualization. These renders in no way reflect an actual Tesla product and are simply speculative and imaginary.

The "Model Q" will not be a reskinned Robotaxi

According to the same Deutsche Bank report, Elon Musk has stated that Tesla has no plans to produce a non-robotic "Robotaxi", and thus the Model Q will be an entirely unique model in the lineup. Its proportions will be smaller than those of the current Model 3 and Model Y but apparently will use a current Tesla chassis for its underpinnings.

The "Model Q" designation has not been officially confirmed yet, but it is what Deutsche Bank uses to refer to the mysterious new vehicle. Sitting on currently available Tesla architecture, the Model Q will reportedly be fifteen percent smaller than the Model 3 and thirty percent lighter. This suggests the likelihood of it being a compact hatchback or small crossover.

The "Model Q" will face tough competition

If the Model Q does turn out to be an affordable compact-ish hatchback, it'll have some serious competition on its hands. Comparable rivals such as the beloved Hyundai Ioniq 5, the upcoming Rivian R3, and the ultra-safe Volvo EX30 have already stirred up plenty of hype for themselves. However, we think the Model Q will fare well under testing against its rivals if it's anywhere near as solid as the current Model 3.

To add some context, the 2024 Hyundai Ioniq 5 starts at $41,800, the 2025 Volvo EX30 starts at $44,900, and the Rivian R3 is expected to be priced around the same area. This means that even if the Model Q does not qualify for tax credits, it will still be the least expensive option in its class.

We can't help but dream that a Model Q Performance could make a compelling hot hatch

Tesla has proved that they are capable of building an electric performance sedan that is genuinely compelling to drive spiritedly with the new Tesla Model 3 Performance. It has been compared to the benchmark of its class, the BMW M3, and not only did it hold up quite well, but it showcased Tesla's ability to hone in their chassis setup for genuinely responsive and exciting driving dynamics.

Admittedly, it's not quite the same sort of excitement as a manual ND Mazda MX-5, but if EV thrills are what you're after, Hyundai's Ioniq 5 N has proven that even an electric hatchback can be enjoyed by driving enthusiasts – with an open mind. Its agile handling, faux engine noises, and simulated gear shifts with flappy paddles have made it a favorite amongst journalists.

If Tesla combined the dialed-in dynamics of its Model 3 Performance with the smaller, lighter proportions of the Model Q, a serious electric hot hatch could eventually be on the table.

Final thoughts

Is the possibility of a relatively affordable Tesla hot hatch EV something that tickles your fancy, or can you only get your rocks off with the timeless roar of a fuel-slurping V8? Do you think fake engine sounds and simulated paddle shifts add to the experience or are they too jarring and offensive for your tastes? Let us know in the comments – we love to hear your thoughts!