Tesla is reportedly mulling the potential revamp of its $25,000 vehicle project, a strange report claims.
It seems unlikely, especially since Tesla launched two new, more affordable models last week with the Model 3 and Model Y Standard trims.
However, a report from European media outlet 36kr claims Tesla has started to advance two vehicle projects, internally codenamed E41 and D50, in China.
People familiar with the matter reportedly told the outlet that “some design and verification reports of the new projects are inherited from the current Model Y and Model 3.”
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These new simplified models would be priced between $5,000 and $5,500 cheaper than what the new ‘Standard’ trims cost. The report also claims that these vehicles would be launched only if the new ‘Standard’ models “fall short of sales expectations.”
$TSLA 🇺🇸 BREAKING 🚨 Tesla is reportedly restarting work on its NV91 and NV93 projects for models smaller than the Model Y 💥
The NV91 project refers specifically to the $25,000 vehicle that CEO Elon Musk had mentioned, a model that was halted in Feb.2024 despite being… pic.twitter.com/L8TDvzmNwm
— Ming (@tslaming) October 14, 2025
This report suggests that potentially more affordable models are being offered, but this seems unlikely, considering Tesla launched the two Standard models just last week, and the only truly affordable model it is working on will be the Cybercab.
However, there is potential for a car to launch that undercuts the newest configurations of the Model 3 and Model Y. As of now, it just seems as if it is something that is far-fetched.
When Tesla’s patent for the unboxed process was published just last month, it seemed more than obvious that the vehicle it would be used for was the Cybercab.
The language used in the patent itself was geared toward more streamlined and quality production and manufacturing, which Tesla must implement to meet the likely demand for the vehicle.
It will be easier to scale vehicles with the unboxed process, and the Cybercab has been routinely mentioned with the sub-$30,000 price tag, even by CEO Elon Musk.
He said during the Q3 2024 Earnings Call:
“I think having a regular 25K model is pointless. It would be silly. Like it would be completely at odds with what we believe…It’s fully considered cost per mile is what matters. And if you try to make a car that is essentially a hybrid, manual, or automatic car, it’s not going to be as good as a dedicated autonomous car. So, yes, Cybercab is just not going to have steering wheels and pedals.”