What is Tesla’s path ahead: Strengths and risks in 2025. Tesla has a great weapon to confront its main danger. It is a new cheap electric car that the brand is working on with the aim of overcoming its worst threat, the strong competition from China that is bursting into the market.
In 2023, the Tesla Model Y had been the best-selling car in the world. Yes, in both the electric and combustion vehicle markets, the entry model to the SUV range of Elon Musk’s brand has swept in terms of sales, beating the almighty Toyota Corolla in its wake.
However, internally, Tesla is not going through such a sweet moment. Although its sales have been very strong last year, the cooling of interest in electric cars, which is causing demand for this type of vehicle to be lower than it has been in recent months, conditions registrations like any other electric manufacturer.
This is the darkest side of Tesla, close to layoffs
On the other hand, the aggressive pricing strategy that the American company has carried out lately, especially to compete in the Chinese market, has considerably reduced its profit margins, which has caused the accounts to not shine at the level of the sales volumes recorded in 2023.
The current situation leaves Tesla facing a great challenge and a great opportunity between now and 2025. And the company is preparing for the launch of what is going to be its cheapest vehicle to date, at the same time that it has to face the great threat that is conditioning the automobile sector in a market as powerful as the European one.
Tesla‘s trump card to give the final blow to the electric car market “It will leave people speechless,” Elon Musk himself said a few weeks ago when he confirmed that a new Tesla vehicle will hit the market at the end of 2025. In fact, it is nothing new that the company has been planning the development of a car for a long time cheaper than the Tesla Model 3, which is currently the gateway to the brand.
Rumors about this new electric car, which could end up being called Tesla Model 2, date back several years. Although, at the moment, nothing that has been said is officially confirmed by Tesla, some reports speak of a compact car, others of a sedan smaller than the Model 3 and some are betting on an urban SUV.
Be that as it may, in a video recently recorded by Tobias Lindh with some shots of the exterior of the Berlin Gigafactory, in Germany, they reveal (starting at minute 19:35) a strange prototype on trestles of what appears to be a larger car smaller than a Model Y (in fact, it is the car next to it and it appears somewhat more compact).
The image reveals a kind of crossover with a very low roof line, a very wide C-pillar and general shapes that do not resemble those of the Model 3 or the Model Y. Of course, we do not know for sure if we are dealing with a prototype of the supposed cheap car that Tesla would be working on, but the image is striking to say the least.
The Tesla Newswire account on the social network “This body resembles a compact SUV, smaller than the Model Y, which matches recent rumors about the long-awaited car.”
Tesla‘s plan (although in the past we have seen that they do not usually meet the initially announced deadlines) is to launch this new economical electric car at the end of next year. Rumors suggest that it will be priced around 25,000 euros, which would make it almost 15,000 euros cheaper than the Model 3.
However, Tesla‘s decision to introduce a cheap electric vehicle in 2025 has a justification. The company’s decision would be to launch this product to face the fierce competition coming from China, with new brands and others already consolidated that are knocking down the market based on very low prices.
BYD has become the main manufacturer of electrified cars in the world in the past year, surpassing Tesla, which was the brand that held this title until then. They are betting on very competitive prices and short delivery times, which makes many potential buyers opt for their products rather than Elon Musk’s signature cars.
Other brands like MG are showing that they can electrify the automotive sector without incurring high prices. These two brands are joined by others from the Chinese market, such as Aiways, Geely, Zeekr or, more recently, the technology giant Xiaomi.
Tesla is in a decisive year to be able to channel its sales and establish itself as the main manufacturer of electric cars in the world.
Without a doubt, the future electric vehicle that it will introduce, supposedly, at the end of next year, will contribute to achieving this milestone, although it remains to be seen how the competition, especially that coming from Asia, counterattacks.
