This is what Tesla is going to do to reach a wider market

Tesla fans have been patiently waiting for the cheaper $25,000 model, but let’s be real, the brand is not going to produce it in the short term. This is what they will do instead.

Enrique Llanes
5 min readSep 6, 2022


Photo by Geoff Greenwood on Unsplash

In September 2020, during Battery Day, we could hint at several slides of Tesla’s presentation, a new smaller model that would cost $25,000. It was clearly shown and expectations grew high.

Also, last week, there was an official response from Moody’s credit rating agency regarding the need for Tesla to upgrade their vehicle lineup in order to gain competitiveness and be eligible for a credit rating upgrade.

Tesla’s goal is to reach 20 million cars sold by 2030 and there are experts who claim that this isn’t feasible as they only have two mass-market vehicles: the Model 3 and the Model Y. If it isn’t possible to sell 10 million units of each model, they only have two ways to proceed: either they unveil new vehicles or they diversify these two with options to change the price and target customer.

It is clear that these two models, a medium size sedan and SUV are not suitable for everybody. Also, they are pricy vehicles and many people would choose another brand and model to save some money if they are looking for a smaller vehicle.

Upgrade the vehicle lineup

This makes more sense and it is the path that I think Tesla will follow. For the last few years, we have heard from Elon Musk that eventually Tesla will have vehicles in all categories.

This is already true for the soon-to-be-delivered Cybertruck. This vehicle will try to meet the demand for the pickup truck category. Although it isn’t available yet, there is no doubt this vehicle is being developed and expectations are quite high.

This was also true in 2020 with the $25,000 car that was hinted at during Battery Day. This model was given for sure until last year’s supply chain issues made Elon Musk say that they could present several vehicles but none of them could be built due to raw materials scarcity. He also said that they weren’t working on a smaller car model.



Enrique Llanes

4X Top Writer // Tesla fan. Technology enthusiast. AI will change the world. Madrid.