“We are confident that a $25,000 Tesla will be a reality.”
The promise
Elon Musk promised that Tesla would build a truly affordable electric vehicle priced around $25,000. The idea first surfaced in 2020, described as the next step toward mass adoption. The car would use a next-generation platform with simplified design and lower manufacturing costs achieved through gigacasting and structural battery packs. It would be built either in Austin or at Tesla’s Mexico gigafactory. However, as of 2025, Tesla has not yet released such a car, citing focus shifts to AI and robotics. Analysts note that inflation and battery material costs make the $25,000 target difficult to reach. Musk still insists the model is coming soon, but there is no prototype or confirmed timeline.
