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Tesla (NASDAQ:TESLA) to Release a Cheaper “Model Q” in 2025
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Tesla (NASDAQ:TESLA) to Release a Cheaper “Model Q” in 2025

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Travis Axelrod, Tesla’s head of investor relations, revealed that a sub-$30,000 EV—referred to as the “Model Q”—is expected to hit the market in the first half of 2025.

Shares of EV maker Tesla (TSLA) are rallying today due to Deutsche Bank boosting its price target from $295 to $370. This comes after investor meetings shed light on Tesla’s upcoming vehicles and ambitious plans. Travis Axelrod, Tesla’s head of investor relations, revealed that a sub-$30,000 EV—referred to as the “Model Q”—is expected to hit the market in the first half of 2025. Tesla also hinted at a three-row Model Y variant for China, and there are ongoing rumors about a Tesla van for cargo and passengers. All of this would significantly expand Tesla’s total addressable market.

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Edison Yu, the analyst behind the upgrade, remains confident about Tesla’s growth potential by forecasting volume growth of 25%-30% next year as the company squeezes more production out of its existing factories.

BofA recently echoed this optimism after touring Tesla’s Austin Gigafactory, pointing to Tesla’s ability to produce lower-cost EVs that appeal to a broader market. While concerns about demand persist—Goldman Sachs recently cut Q4 delivery estimates, and Tesla temporarily furloughed Cybertruck workers due to supply buildup—analysts see Tesla’s product pipeline as a game-changer. It is also worth noting that Tesla is reportedly making another push into India, which could further improve its prospects.

Autonomous Driving Gaining Traction

Tesla’s autonomous driving ambitions are also gaining traction. Yu expects Robotaxi testing to roll out next year in California and Texas. Furthermore, Tesla believes that its latest Full Self-Driving (FSD) software, version 13, will drastically improve performance and reduce human interventions to once every 10,000 miles. As a result, unsupervised FSD could launch as early as mid-2025 with the help of regulatory changes under the new U.S. administration that could streamline self-driving guidelines.

Is Tesla Stock a Buy, Hold, or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 13 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 70% rally in its share price over the past year, the average Tesla price target of $260.55 per share implies 36.14% downside risk.

See more TSLA analyst ratings

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