This was revealed by some employees involved in the company’s project to produce low-cost electric vehicles.
They told Reuters that the vehicles under development will be accessible to a wider population due to their lower prices.
They also indicated that Tesla is working with its suppliers but has requested different components from those used in its previous models such as the Tesla Model 3 and Tesla Model Y.
Reports suggest that these vehicles will be manufactured in China, with plans to expand their market to the United States and Europe.
This project marks a return after CEO Elon Musk had in 2024 decided to halt plans for low-cost EV production, stating he would instead focus on other innovations.
Musk had announced a shift toward developing autonomous vehicles and humanoid robots.
However, many observers are now questioning whether Tesla has resumed this affordable EV project to regain market share or simply to make electric vehicles more accessible to the general public.
The new models are expected to be priced lower than the current Model 3, which sells for about $34,000 in China and $37,000 in the U.S., largely due to the use of cheaper battery technology.
As a result, the new vehicles are expected to have a range of about 306 kilometers on a full charge, compared to 327 kilometers for the Model Y.
