Tesla Has Resumed Development of an Affordable Electric Car

Several sources are reporting that Tesla is developing a new compact and affordable electric car. This comes just two years after Elon Musk personally shut down the program to produce affordable electric cars.

According to rumors, the company has resumed development of a budget model. It will be smaller and lighter than the Model Y, equipped with a single motor instead of two, and a smaller battery, which will affect its range.

Sales are planned to launch in China, with an estimated price of $34,000. Production will most likely be set up in Shanghai, and mass production of the electric car is not expected before 2027.

The project seems particularly unexpected given the company CEO’s decision to shut down the $25,000 affordable electric vehicle program in 2024. It is likely that falling sales, the Cybertruck’s failure, and the unsuccessful launch of the autonomous taxi service forced Tesla to shift its priorities.