A few years ago when it only sold the Model S, Tesla promised a new electric car that would be better and more affordable than the Nissan Leaf. That project became the Model 3, but even though it is better than the Leaf, it's not more affordable. Originally targeted to start from around $30,000, the Model 3 was priced from $35,000, and it currently retails from almost $38,000. Come 2020 and Elon Musk promises that Tesla will make a $25,000 car in three years.
A $25,000 EV sounds good, but will Tesla deliver?
Musk made the announced at a presentation at Tesla's California factory. Called Battery Day, the presentation included announcements that the company is working on cheaper and more powerful batteries for its electric car. These new batteries would be some 50-percent cheaper to build and they could also increase range by at least 50 percent.
However, he did point out that many of the innovations are still works in progress and that the said EV will take three years to develop.
On paper, this is great news. Most affordable EVs you can buy now cost more than $30,000, so an electric car that costs $25,000 in base trim would be a major breakthrough. However, Tesla has a reputation for missing its deadlines, so if this $25,000 EV happens, expect it to take longer than three years to hit the market.
Elon Musk didn't provide additional information about this upcoming EV, but the price suggest that it will slot under the Model 3. This likely means a subcompact sedan or hatchback, or maybe a vehicle available in both body styles. But while Tesla aims to keep the base model at around $25,000, trims with longer range and performance upgrades will probably cost well in excess of $30,000.
Meanwhile, Tesla is setting new benchmarks with the Plaid
During the same presentation Elon Musk announced the Model S Plaid, the new range-topping model of the series. Powered by a three-motor powertrain and a bigger battery, it's capable of hitting 60 mph from a standing start in less than two seconds, while charging toward a top speed of 200 mph. It's also supposed to run for more than 520 miles on a single charge.
Which is the most affordable Tesla right now?
Tesla also offers more expensive variants of the Model 3 with better performance and greater range. The Long Range trim comes in at $46,990, while the Performance version starts from $54,990. For reference, the Model Y comes in at $49,990, the Model S starts from $74,990, while the Model X retails from $79,990.