2025 Tesla Model Q teased for the first time

Tesla CEO Elon Musk has teased one of two new volume-selling models to be released by the American EV specialist in the next few years, proving correct rumours of an all-new mass-produced small SUV to be positioned below the popular Tesla Model Y.

Speaking at Tesla’s annual investor’s conference, Musk forecast annual production of more than five million units for the two new products, which he promised will be designed and produced using techniques “head and shoulders above anything else that is present in the industry”.

The teaser itself is little more than a darkened outline, but the silhouette is instantly recognisable due to its similarity to the top-selling Model Y, albeit with a slightly stubbier nose.

Musk also confirmed the new models would be underpinned by Tesla’s new 48-volt electrical architecture and motivated by its latest-generation ‘power unit’, which is claimed to feature no rare earth materials at all, 25 per cent less silicon carbide and require a 50 per cent lower factory footprint than Tesla’s current motors.

Each motor is said to cost only about $US1000 ($A1500) to produce.

No other details of the new models were divulged at the conference, but previous intel has suggested they’ll be downsized versions of the Model Y and Model 3, possibly dubbed the Model Q and Model 2 respectively.

“People always want to know what our next product is,” Musk said in his address.

“We obviously need to have a proper, dedicated product launch – I just want to emphasise that we are actually building a new product, we are actually designing a new product, we’re not sitting on our hands here.”

Musk’s five-million-plus annual production forecast is roughly a million more than previous estimates, and the new models are set to be produced the US, Mexico, China and Germany.

That means they’re both a good chance to be sold in Australia, where potential Tesla buyers are still reeling following confirmation that right-hand drive production of the flagship Tesla Model S and Model X has been axed.

That leaves the Model 3 and Model Y, which were both among the 10 most popular new vehicles sold last month, as the only two Tesla models on sale here, where the Cybertruck’s release is also under a cloud.

Tesla executives have previously hinted at a 2025 global launch for the new volume-selling model(s), but no indications have yet been given for the start of production and pricing also remains unknown.

How much the Model 2 and Model Q end up costing if and when they arrive Down Under will depend on how much Tesla can reduce production costs with its new architecture and power units.

The big question is whether Tesla’s next-gen compact cars can match Australia’s cheapest EVs, which currently include the $44,490 GWM Ora, $44,990 MG4 and $48,011 BYD Atto3.

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