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A cheaper Tesla is back on the menu

Two Tesla Model 3s shown driving on a mountain road, one red and one gray.
The Model 3 might get an affordable younger sibling in 2025. | Image: Tesla

Tesla says it will build more affordable electric vehicles — perhaps as soon as 2025 — refuting recent reports that Tesla CEO Elon Musk had canceled plans for a cheaper “Model 2” vehicle in favor of getting a robotaxi out the door. But Musk didn’t clarify whether the lower-cost EV would be a brand new model for Tesla or simplified versions of its current vehicles.

“In terms of a new product roadmap, there’s been a lot of talk,” Musk said during the company’s first quarter earnings call, addressing the concerns investors have expressed over the past month about the delayed plans for a low-cost EV. “We’ve updated our future vehicle lineup to accelerate the launch of new models.” Musk said we might see the vehicles in early 2025, if not…

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