00:14 15-10-2025

Tesla eyes $25k compact EV revival amid Chinese rivals

Tesla may be poised to revive its compact electric car project, which was previously canceled in 2024. Reports from China suggest the automaker is again weighing plans for an affordable EV built on its third-generation platform. The shift is linked to the lackluster performance of the stripped-down Model 3 and Model Y, versions that proved too compromised and failed to attract buyers in the United States and Europe. The outcome speaks for itself: aggressive cost-cutting that blunts the product rarely wins over the market.

Elon Musk had earlier pledged to develop an electric car priced under $25,000, using a new unboxed vehicle manufacturing method. That initiative was put on hold amid soft sales and hopes that revenue from Full Self-Driving would pick up the slack. Now, as Chinese brands BYD and Leapmotor rapidly build momentum, Tesla appears compelled to adjust course—less a bold experiment, more a practical response to competitive pressure.

According to leaks, the company is working on projects NV91 and NV93—two models aimed at high-volume production to restore Tesla’s competitiveness in China. They are reportedly planned for existing factories, with pricing targeted at around $25,000.

If these rumors pan out, it would amount to an admission that the push for pared-back Model 3/Y variants was one of Tesla’s most consequential strategic missteps in recent years. A clear-eyed reset, however, could still put the brand back on the front foot.