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UPDATE: Tesla Model Q is reportedly coming in first half 2025: Here’s what it will cost

Credit: Tine Rusc

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Update 7:37 p.m. ET: The Wall Street Journal’s Becky Peterson reports having a copy of Deutsche Bank’s report. Here’s what she said:

I got a copy of the Deutsche Bank report. Here’s what it does say: 1. Travis Axelrod met with DB for its Autonomous Driving Day on December 5 in NYC. 2. DB describes “the new Tesla model” which it calls “Model Q”. 3. DB says it will launch in the first half of 2025, and will cost less than $30k with subsidies, or $37,499 if Trump cancels the IRA tax credit. 4. DB says it will be built on Tesla’s existing lines.

The report doesn’t say anything about Redwood, the internal code name for a mass market vehicle, built on a new platform, which Musk paused earlier this year. It also doesn’t say anything about the size or cost, or how it might differ from a Model 3.

A couple of more points of context: Tesla told investors on its Q3 earnings call that its plans to deliver a more affordable model in H1 2025. They said that to do that it will lower the price of its current line up and then eventually sell robotaxis. When asked about a non-robotaxi, $25,000 car Musk said: ‘We’re not making a non-robo…’”

We can encapsulate that the Model Q is Deutsche Bank’s name for the vehicle, not Tesla’s. Model Q is still a label used by those outside of Tesla.

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Paragraph 5 has also been updated for accuracy as Tesla China has now appeared to have commented on the Model Q report.



 Tesla is reportedly planning to launch the affordable Model Q in the first half of next year, a massive development to the company’s plans as it aims to offer a cheaper car that will help expand its annual growth rate.

One of Tesla’s plans moving past 2024 was to launch a new platform that will enable more cost-effective models, bringing the vehicles to a new demographic and perhaps expanding sales for years to come.

Rumors of the Model Q, Model 2, and others have floated around the community for a very long time, but now it seems we have some substance with a new report out of China.

According to a report from Globalchinaev, Tesla announced during an investor meeting with Deutsche Bank that it has plans to launch the Model Q for less than $30,000, aiming to compete with vehicles like the BYD Dolphin and Volkswagen ID.3.

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Earlier today, Tesla China said it had “no information to share about the Model Q,” via MKTnews.net.

Tesla said early this year that investors should expect a lower growth rate in 2024 because of the company’s focus on the next-generation platform that would bring more affordable vehicles.

Tesla’s next-generation platform could mean ‘notably’ lower growth rate in 2024

It also said on more than one occasion that it plans to bring affordable models to market in the first half of 2025.

Both of these things would align with the report, which details the vehicle as part of the rumored “Project Redwood” that we reported on during January of this year.

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The report says the vehicle will be 15 percent smaller and 30 percent lighter than the Model 3, bringing a more compact vehicle to the Tesla lineup. With Tesla also focusing on the Robotaxi and its Full Self-Driving efforts, this vehicle will likely be as minimalist as possible.

It will feature a steering wheel and pedals for the time being, but will be geared toward autonomous driving functionality.

Need some awesome accessories for your Tesla in time for the Holidays? Check out the Teslarati Marketplace:

Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk trolls Tesla stock skeptics after 23 percent one month boost

“A lot of people thought Tesla stock would collapse as the tax credits came to an end this month,” Musk wrote. “Guess not.”

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Elon Musk spent some time trolling Tesla stock (NASDAQ: TSLA) skeptics following the company’s 23 percent boost over the past month.

Tesla’s rally on Wall Street over the past several weeks has completely erased any losses investors felt since the start of 2025. So far this year, shares have risen by over 13 percent.

Most of this has been evident over the past month, as the company has seen a nearly 25 percent increase in the past thirty days.

With the imminent abolishment of the $7,500 EV tax credit, some analysts and investors expected the stock to take a hit. It is no secret that the tax credit’s expiration will impact demand to some extent. In the short term, it has been strong for the company’s delivery outlook in Q3.

Musk trolled those who thought the stock would respond negatively to the tax credit going away:

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The strength of Tesla shares over the past several weeks has prompted several analysts to adjust price targets and their firms’ overall outlook with the company’s automotive division, as well as its other projects.

Mizuho analysts pushed their price target from $375 to $450, mostly due to Tesla’s strength moving forward as a leader in the U.S. EV market.

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Vijay Rakesh, managing director at the firm, wrote in a note to investors:

“We see TSLA maintaining key leadership in the U.S. BEV market despite some near-term challenges.”

Mizuho raises Tesla (TSLA) price target on stronger 2026 outlook

Some of this strength relies on the rollout of the lower-cost “Model 2,” which Tesla said it built the first production units of in its Q2 Earnings Shareholder Deck.

Goldman Sachs also increased its Tesla price target from $300 to $395, which is still below the current trading levels.

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However, the firm is more bullish on the company’s humanoid robotics and autonomy projects:

“If Tesla can have [an] outsized share in areas such as humanoid robotics and autonomy, then there could be upside to our price target.”

Tesla shares are currently trading at $424.54 at the time of publication.

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China releases draft on door handle design following Tesla scrutiny

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Tesla Model S self-presenting door handle
Tesla Model S self-presenting door handle (Credit: TesBros)

China’s regulatory agency handling automotive concerns has released a draft on what it is considering to be standard for door handle designs on vehicles, following some scrutiny it placed upon Tesla’s designs.

Over the past few weeks, we have reported on two different criticisms Tesla has faced with its door handle designs, one in China and one in the United States. Both will require the company to come up with solutions and potentially new engineering.

Chief Designer Franz von Holzhausen appeared on Bloomberg last week and said the company is already looking to implement something that will bring together the mechanical and electrical releases that the door handles depend on.

Tesla addresses door handle complaints with simple engineering fix

Some vehicles in the Tesla lineup already have mechanical latches on all four doors to enable them to open in the event of a dead battery. However, there are some additional measures that need to be taken.

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The first guidelines are being released by the Chinese Ministry of Industry and Information Technology (MIIT), which composed a draft called “Technical Requirements for Automobile Door Handle Safety.”

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There are a handful of new standards, including a required mechanical release for every door on the vehicle apart from the trunk. Additionally, there are some other requirements, such as the ability to open side doors from the external handles without the use of tools.

Here are the six guidelines that the MIIT are mulling as requirements (via CarNewsChina):

  • Every door (excluding trunk lids) must feature an external handle with mechanical release functionality
  • In case of accidents involving battery thermal events, non-collision side doors must be openable through external handles without tools
  • External door handles must provide adequate hand operation space of at least 60mm×20mm×25mm, regardless of handle position
  • Every door must include internal handles with mechanical release capability that can open doors without external tools
  • If electric internal handles are installed, mechanical backup handles must also be provided
  • Internal handles must be easily identifiable, clearly visible, positioned within 300mm of door edges, and located within specific zones relative to seating positions

These new standards were developed by the China Automotive Standardization Research Institute, and Deputy Director Rong Hui stated that the organization used 63 vehicle models from 20 different companies to establish these early requirements:

“With the development of automotive electrification, electric concealed door handles have been widely adopted, and the operation methods and structural types of door handle products on the market are increasingly diverse. These standards aim to respond to new technologies and safety requirements.”

The MIIT also did its own research, which utilized 230 different vehicle models’ door handle configurations. Validation testing was performed on more than 20 models.

Tesla’s Planned Adjustments

Based on what von Holzhausen said, Tesla plans to make some adjustments to its door handles, implementing simple fixes.

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Tesla plans to combine both the mechanical and electrical releases to help reduce stress in “panic situations.” Franz said the company has a “really good solution for that.”

In regard to the mechanical release, he said, “it’s in the cars now…The idea of combining the electronic and the manual one together in one button, I think, makes a lot of sense.”

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Elon Musk

Elon Musk’s xAI wins federal AI contract as Grok undercuts ChatGPT

The deal provides access to Grok at $0.42 per organization, because of course it’s $0.42.

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Credit: xAI

The U.S. General Services Administration (GSA) has finalized a major agreement with Elon Musk’s xAI, making its Grok artificial intelligence models available to government agencies nationwide. 

Announced on Thursday, the deal provides access to Grok at $0.42 per organization, one of the lowest pricing structures yet for AI services under GSA’s OneGov initiative. The contract runs until March 2027, marking the longest term for a OneGov AI agreement to date.

Low-cost access

The agreement covers both Grok 4 and Grok 4 Fast, xAI’s advanced reasoning models, and includes dedicated engineering support for agencies adopting the tools, the GSA stated in a press release. Federal offices will also be able to pursue upgrade paths to enterprise subscriptions aligned with FedRAMP and Department of Defense security standards.

To make adoption easier, xAI will deliver training programs and tailored enablement services, helping agencies integrate AI models into existing workflows securely. The GSA emphasized that the contract is designed to accelerate responsible AI use while standardizing pricing and avoiding duplicative procurement deals across the government.

Federal Acquisition Service Commissioner Josh Gruenbaum is optimistic about Grok’s use in the federal government. “Widespread access to advanced AI models is essential to building the efficient, accountable government that taxpayers deserve—and to fulfilling President Trump’s promise that America will win the global AI race. We value xAI for partnering with GSA—and dedicating engineers—to accelerate the adoption of Grok to transform government operations,” he stated.

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Expanding AI access

The Grok agreement is part of the broader OneGov Strategy, which was launched earlier this year to modernize federal technology acquisition. Under the initiative, agencies gain access to AI tools from leading providers at negotiated rates, ensuring consistent pricing and simplified procurement. Companies such as OpenAI, Anthropic, Google, and Meta have signed similar deals, but xAI’s contract is currently the longest in duration and lowest in cost. For context, OpenAI is charging government agencies $1 per year for ChatGPT, as noted in a Bloomberg News report.

Elon Musk, for his part, is grateful for the opportunity to use Grok in the federal government. “xAI has the most powerful AI compute and most capable AI models in the world. Thanks to President Trump and his administration, xAI’s frontier AI is now unlocked for every federal agency empowering the U.S. Government to innovate faster and accomplish its mission more effectively than ever before,” he said.

xAI cofounder Ross Nordeen also shared his thoughts about the matter. “‘Grok for Government’ will deliver transformational AI capabilities at $0.42 per agency for 18 months, with a dedicated engineering team ensuring mission success. We will work hand in glove with the entire government to not only deploy AI, but to deeply understand the needs of our government to make America the world leader in advanced use of AI,” he said.

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