Tesla is a major player in the electric vehicle space and already has a number of upcoming vehicles including the Cybertruck, Roadster, and Semi, but it seems that they are planning to add a more budget-friendly and entry-level option to their lineup.
Elon Musk initially announced at Tesla Battery Day last year that a cheaper $25,000 passenger electric vehicle positioned below the Model 3 would be coming in the next few years. A report from Autocar hints that the Tesla Hatchback is in development and planned to go on sale in 2023.
The $25,000 price tag makes the upcoming Hatchback the cheapest model in Tesla’s lineup, and this is possible due to Tesla’s new battery technology. Tesla’s own “4680” battery cells are able to reduce manufacturing costs by almost 50%, while simultaneously providing 5x the energy, 6x the power, and 16% more range per charge. The Tesla Hatchback would be expected to have a minimum range of 250 miles, as Musk has stated before that less than 250 miles of range is unacceptable. The Standard Range Tesla Model Y was even discontinued due to its 244 mile range being too low for Tesla’s standards. Musk also stated that the vehicle would be “fully autonomous”, although we’re not sure what that completely entails.
The Tesla Hatchback is aimed at Europe and China and is positioned to compete with electric vehicle offerings from other manufacturers such as Volkswagen, Nissan, Kia, etc. The success of the Model 3 has proven that the demand for electric vehicles is there. The upcoming budget-friendly Tesla could be a very popular option and help Tesla established themselves as the leading electric vehicle manufacturer.