Speculation is growing again about a release date for Tesla’s secrecy-shrouded, low-budget US$25,000 electric car, often referred to as the "mystery model".
Elon Musk, chief executive, initially hinted at this game-changing vehicle during Tesla Battery Day in 2020.
Reports say the key to its affordability lies in Tesla's groundbreaking 4680 batteries, expected to slash battery costs by over 50%.
These batteries enable the new model to not only achieve a $25,000 price point but also offer an impressive range of 250-300 miles per charge, outperforming most similarly priced electric cars.
At present, other automakers like Hyundai and Ford are not focusing on lower-end EVs, opting for larger, more profitable vehicles.
In contrast, Tesla's ambitious goal is to produce four million of these budget-friendly electric cars, poised to make EVs accessible to a wider consumer base.
The vehicle is rumoured to be a compact hatchback resembling a smaller Tesla Model Y, catering to those who previously found electric vehicles financially out of reach.
This move towards affordability could have a substantial positive impact on both local air quality and the environment, as traditional passenger vehicles emit roughly 5.1 tons of carbon dioxide annually.
Tesla is fighting a price war in China and increasingly elsewhere due to a flood of production from new Chinese producers with prices of its established models already reduced in most markets.