Tesla Discloses Second-Quarter Finances - Deutsche Bank Anticipates Model Q Presentation Prior to 2026's End
Tesla is set to launch a smaller, more affordable electric vehicle, the Model Q, towards the end of 2025. This announcement, supported by Tesla's own announcements and predictions by Deutsche Bank, comes as the company seeks to expand its market reach and compete with other affordable electric vehicles.
Priced Under $30,000
The Model Q is designed to cater to the mass market, with a price tag under $30,000. This places it in competition with other electric vehicles such as the BYD Dolphin and Volkswagen ID.3, particularly in markets like China.
Small Electric SUV
The Model Q is a small electric SUV that combines Tesla’s Model Y DNA with a futuristic design and next-generation autonomous systems. It is designed for urban use, boasting a minimalist and practical interior.
Battery Options and Range
The Model Q will offer battery options including a 75 kWh lithium iron phosphate (LFP) battery and a 90 kWh high-density lithium battery. These options enable a range of up to approximately 330 miles (WLTP), along with fast charging capabilities.
Affordable Manufacturing
To keep costs down, the Model Q's design and production strategy prioritise affordability. This is achieved through a streamlined manufacturing process similar to Tesla’s Robotaxi plans and by basing the new model on existing production lines to minimise retooling.
Autonomous Features
While early reports emphasise advanced autonomous features, it is suggested that the most affordable versions might scale back on premium features and autonomous driving capabilities to keep costs down.
Expected Availability
The Model Q is expected to be a significant factor for Tesla's total sales in the last quarter of 2025. Deutsche Bank predicts 25,000 sales of the Model Q for the last three months of 2025.
Investor Inquiries
There may be investor inquiries about new products on Wednesday, potentially related to the Model Q's impending release.
The Tesla Model Y L for China, a six-seater variant of the Model Y, has already been announced by Tesla. However, no new information about a "return to growth" in 2025 or a further decline in sales was provided in this paragraph.
References
[1] TipRanks [2] Deutsche Bank [3] Tesla Q2 2025 Earnings Call [4] Electrek
- The Model Q's affordability, priced under $30,000, positions it to compete with other electric vehicles like BYD Dolphins and Volkswagen ID.3, particularly in China's market.
- The Model Q, equipped with battery options including a 75 kWh LFP battery and a 90 kWh high-density lithium battery, boasts fast charging capabilities and a range of up to approximately 330 miles (WLTP).
- In a move to keep costs down, the Model Q's design and manufacturing strategy prioritize affordability, implementing a streamlined production process similar to Tesla’s Robotaxi plans and using existing production lines to minimize retooling.
