Reuters: Tesla's new model will debut this year and will be 20 per cent cheaper than the Model Y

Rumours about Tesla's low-cost electric car have been circulating for a few years now, and now they seem to be getting closer to reality. According to Reuters, the company plans to officially unveil the new model as early as this year to regain a foothold in China and other key markets.

Here's What We Know

The project, codenamed "E41", is being developed on existing technology and production lines, which will reduce production costs by 20 per cent compared to the updated Model Y. The latter is sold in China with prices starting at $36,350, accordingly, the "E41" will be slightly cheaper than $30,000.

This new information refutes earlier rumours that Tesla's low-cost electric car will be just a simplified version of the Model Y, rather than something unique. Mass production of the electric car will reportedly begin next year in China. It will also be produced in Europe and North America, but no timeline has been disclosed.

Earlier this year, Tesla said when releasing its 2024 report that "plans for new vehicles, including more affordable models, remain on track to begin production in the first half of 2025." The company added that the new electric vehicles will use parts of its next-generation platform along with elements of existing platforms, and will be produced on the same production lines as its current line of passenger cars. Reuters sources confirm these claims.

It remains unknown what the new electric car will look like and what powertrain versions it will receive. It is likely that the US automaker will use the same electric motors and battery packs as in the current Model 3 and Model Y.

Source: Reuters