Tesla Model Q Electric Vehicle Project

planned

Tesla is developing a new, smaller, and more affordable electric vehicle, potentially branded as the "Model Q" or "Redwood." This compact crossover or hatchback aims to broaden Tesla's market reach by offering a vehicle priced under $30,000, potentially as low as $25,000 with incentives. The vehicle is expected to have a driving range of approximately 250 miles using cost-effective LFP batteries and will incorporate a simplified "unboxed" assembly process to reduce manufacturing costs. Production is scheduled to begin in mid-2026 at Tesla's existing facilities, including Giga Texas and potentially Giga Shanghai, with an aggressive ramp-up strategy targeting larger volumes by early 2027. The model will support Tesla's Full Self-Driving software in the future but will not feature full autonomous capabilities at launch. The project is a strategic response to declining sales and increasing competition from affordable EVs by manufacturers like BYD and Volkswagen.