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Tesla to launch $30,000 Model Q Car 2025 · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk Podcast.
• 0:05
  This is a show where we discuss the critical crossroads that
• 0:08
  shape SpaceX, Tesla X, The Boring Company, and Neurolink.
• 0:13
  I'm your host, Will Walden. What does Tesla's rumoured Model
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  Q mean for the electric vehicle market?
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  And could this sub $30,000 model redefine affordability for EV
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  buyers? And how does the potential
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  launch of a China specific 3 role model Y factor into Tesla's
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  strategy? Now, these questions take center
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  stage as Tesla's latest investor meeting reveals significant
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  updates about his product road map.
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  Now, Tesla is reportedly gearing up to launch a new affordable
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  vehicle, tentatively referred to as the Model Q, in the first
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  half of 2025. Now Deutsche Bank analyst
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  following a recent meeting with Tesla's head of investor
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  relations Travis Axelrod disclosed the vehicle's
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  projected price less than $30,000.
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  When including subsidies without USEV tax credits, the price
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  could rise to $37,499. Analyst Edison Yu characterized
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  this move as part of Tesla's strategy to expand its total
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  addressable market, or the T AM, with the Model Q joining a
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  lineup potentially augmented by other innovations such as a
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  longer wheelbase Model Y variant for China.
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  Now, the announcement aligns with Tesla's long term goals of
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  broadening its appeal by diversifying its lineup and
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  targeting underserved market segments.
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  The Model Q would be smaller and lighter than the current Model 3
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  by approximately 15% and 30%, respectively.
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  Analysts speculate it will serve as an entry level model with
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  streamlined features to keep costs down while maintaining
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  Tesla's reputation for cutting edge technology.
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  Now, in addition to the Model Q, Tesla appears poised to target
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  the Chinese market with a new variation of its Model Y Rumors
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  suggest this vehicle will feature a three row
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  configuration and a longer wheelbase, aiming to appeal to
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  families and compete with domestic automakers like BYD.
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  While Tesla China has declined to confirm specifics, the move
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  could address growing competition in a market where
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  affordability and versatility Dr. consumer preferences.
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  Now. This potential Model Y variant
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  reflects Tesla strategy of tailoring its offerings to
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  regional needs. By focusing on China, a crucial
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  EV market, Tesla could enhance its competitiveness while
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  reinforcing its global growth objectives.
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  Now, according to Deutsche Bank, this diversification in product
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  design could be instrumental in boosting Tesla's production and
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  delivery numbers in the coming years.
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  Now, the revelations from the investor meeting have already
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  influenced financial projections.
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  Deutsche Bank raised Tesla's stock price target from 295 to
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  370, setting optimism about the Model Q and other forthcoming
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  products. Now, Bank of America also
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  adjusted its outlook after a recent visit to Tesla's Giga
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  Austin factory, reiterating confidence that a sub $30,000 EV
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  could significantly expand Tesla's Tam.
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  Investors appear encouraged by Tesla's continued innovation
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  despite concerns about fluctuating demand and potential
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  economic headwinds. And Tesla's stock climbed 3%
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  during midday trading following the news, extending its recent
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  winning streak to five days. Now, analysts predict that a
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  more affordable vehicle could attract a new demographic
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  buyers, further solidifying Tesla's dominance in the EV
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  sector. Now, while Tesla's product
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  announcements have generated excitement, challenges still
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  remain. Goldman Sachs recently revised
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  its quarter four delivery estimates downward, setting
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  potential hurdles in achieving year over year growth in 2024.
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  Now, concerns about demand have also been amplified by reports
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  of temporary worker furloughs a Tesla's cyber truck production
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  line. Now, despite these issues, Tesla
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  remains a confident outlook. During the investor meeting, the
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  company projected value growth of 25% to 30% for next year,
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  emphasizing its ability to maximize production capacity at
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  existing factories. Such growth could hinge on the
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  successful rollout of the Model Q and other new vehicles, which
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  aimed to attract a broader customer base without
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  compromising profitability. Now, Tesla's ambitions extend
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  beyond traditional EVs, though the company is making strides in
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  autonomous driving technology, which is a topic that dominated
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  much of the investor meeting discussion.
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  Tesla's Full Self Driving software is undergoing
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  significant updates, with version 13 reportedly
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  demonstrating A3 to 5X performance improvement compared
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  to its predecessor. Analysts expect this iteration
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  to reduce human interventions to just over one per 10,000 miles.
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  Tesla's Robotaxi initiative is also a focal point.
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  The company plans to launch testing in California and Texas
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  next year, using teleoperators for added safety.
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  During the initial phase, this fleet will consist of company
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  owned vehicles, reflecting Tesla's cautious approach to
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  scaling autonomous services. Now, regulatory hurdles are a
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  thing. One potential barrier to Tesla's
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  autonomous ambitions is the regulatory environment.
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  However, you noted that Tesla anticipates changes under the
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  incoming US administration, which could streamline federal
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  guidelines for self driving technology through the National
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  Hwy. Traffic Safety Administration or
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  the NHTSA. As such, regulatory shifts could
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  pave the way for faster deployment of robotaxi services
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  both domestically and internationally.
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  The company's optimism contrasts with its history of setting
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  ambitious goals that have sometimes fallen short.
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  Yet analysts believe Tesla's current plans, backed by
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  advancements in FSD technology and anticipated regulatory
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  support, stand a strong chance of fruition now.
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  The Model Q's projected affordability signals Tesla's
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  intent to dominate the budget friendly sector of the EV
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  market, Competing directly with models like the BYD Dolphin and
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  Volkswagen ID 3. This vehicle could redefine
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  customer expectations for cost effective electric mobility.
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  And by leveraging economics of scale and simplifying features,
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  Tesla aims to make EV ownership accessible to a much broader
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  audience. At the same time, Tesla's
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  exploration of specialized models like the Three Row Model
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  Y for China shows that they're building for certain
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  environments. The adaptability may prove
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  crucial as the global EV market becomes increasingly
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  competitive. Hey, thank you so much for
• 6:43
  listening today. I really do appreciate your
• 6:45
  support. If you could take a second and
• 6:47
  hit this subscribe or the follow button on whatever podcast
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  platform that you're listening on right now, I greatly
• 6:52
  appreciate it. It helps out the show
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  tremendously and you'll never miss an episode.
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  And each episode is about 10 minutes or less to get you
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  caught up quickly. And please, if you want to
• 7:03
  support the show even more, go to patreon.com/stagezero and
• 7:09
  please take care of yourselves and each other and I'll see you
• 7:12
  tomorrow.