Tesla to launch low-cost models, dedicated robotaxi

Tesla is seeing its growth cool this year because of the aging of its bestselling vehicle, the Model Y crossover, and the lack of significant styling updates on the higher-end but decade-old Model S sedan and Model X crossover.

The electric vehicle leader has plans for a Model Y freshen, the introduction of more affordable vehicles based on the Model Y platform next year and the unveiling of a dedicated robotaxi model in October.

"Tesla is facing the most hostile retail environment it's seen in over a decade," said Karl Brauer, executive analyst at iSeeCars. "Tesla has done a masterful job of selling the same basic cars for longer than a traditional brand, but the ever-increasing choice in EVs means Tesla must freshen its product line or slowly wither away."

While CEO Elon Musk has said repeatedly this year that Tesla's future depends on selling fully autonomous vehicles, the company is also keen on moving further into mainstream vehicle segments with less expensive, human-driven models. Tesla has not announced pricing for its more affordable vehicles, but analysts expect a target of around $30,000 before shipping.

Last year, Tesla said it would build a new ground-up affordable model but changed plans this year. Instead, the automaker will use its existing compact vehicle platform with upgrades that are being developed for the robotaxi.

In mid-August, Tesla began offering a base version of the Model 3 in Mexico that uses cloth seats for the first time. Teslas generally come with premium vinyl seats. The new base model in Mexico is also missing the rear-seat 8-inch infotainment screen, suggesting some cost cutting. The base Model 3 in the U.S. still has the premium seats and rear screen.

Cybertruck: The large pickup launched in November 2023. A freshen is expected in 2028.

Model X: The midsize crossover received a freshen in 2021 that focused mostly on improving its interior and infotainment features. No significant updates are expected before the end of the decade.

Model Y: A freshen of the compact crossover is expected in early 2025. It's anticipated the crossover will incorporate updated features from the Model 3 freshen that launched in the U.S. in January. The two vehicles share a platform.

The Model Y should receive ventilated seats, ambient lighting and a rear-seat infotainment screen. Other updates expected include removing the turn signal stalk, with that operation moving to buttons on the steering wheel, and removing the shifter stalk, with the shifting function moving to the infotainment screen. The freshened Model Y Performance trim level is also expected to get an adaptive suspension.

After the Model Y freshen next year, no significant changes are expected until 2030, said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.

Model S: Tesla's flagship sedan received a freshen in 2021 along with the addition of a high-performance Plaid trim level. The sedan is the oldest vehicle in a lineup that has not seen a redesign of any of its models since their introduction. The Model S is likely to continue unchanged into the next decade. It could also be discontinued before then, analysts said.

Model 3: The compact sedan was freshened for the U.S. market in January. Tesla added premium features, including ventilated seats and a rear-seat infotainment screen. The turn signal stalk was removed and that function is now handled through buttons on the steering wheel. The shifter stalk was also removed and that function has been incorporated into the infotainment screen. The freshened Model 3 Performance was updated with an adaptive suspension, 510 hp, sport seats and carbon-fiber interior trim pieces. It also received an updated performance brake package.

No significant updates are expected for the Model 3 until 2029. Tesla could create a special edition at some point, possibly using the Plaid name from the sport trim level of the Model S, said Robby DeGraff, manager of product and consumer insights at AutoPacific.

Roadster: Tesla's second-generation Roadster was first teased in 2017, but it has been delayed multiple times. Musk's latest estimate for it is 2025. Tesla originally said the Roadster price would be $200,000 for the base model and $250,000 for a limited-edition model. The automaker has not said whether those prices have changed.

Robotaxi: Tesla has not given many details about the dedicated AV it plans to unveil Oct. 10. Musk has referred to it as the "Cybercab," suggesting it may share some design elements with the angular Cybertruck, which uses unpainted stainless steel exterior panels. He has said the robotaxi won't need human controls such as a steering wheel and foot pedals. It will be the first vehicle to use a new platform and new manufacturing methods to slash costs, Tesla has said.

"The automaker is targeting a production start in early 2026, however, Tesla has never been good at hitting production targets," Fiorani said.

New affordable models: Tesla hasn't provided many details about its new affordable vehicles, which the company said in July remain on track to begin production in the first half of 2025.

"These vehicles will utilize aspects of the next-generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle lineup," Tesla said in July.

Some analysts expect the affordable models to be stripped-down versions of the current Model 3 and Model Y. "The lower-priced variant of the Model Y will begin production in April 2025," Fiorani said. "While the starting price is said to be under $30,000, significant differences between it and the Model Y, such as range and interior space, will be needed to not siphon off sales from the popular — and more profitable — Model 3 and Model Y."