Tesla reveals Q2 financial figures; Deutsche Bank anticipates Model Q launch by year-end 2025
Tesla, the leading electric vehicle (EV) manufacturer, is set to release a new compact EV called the Model Q by the end of 2025, according to reports from Deutsche Bank and Tipranks. This information comes as Tesla has already announced the six-seat Model Y L for the Chinese market.
Deutsche Bank analysts predict that the Model Q will be priced under $30,000, making it a competitive option in the EV market. The vehicle is expected to use lithium iron phosphate batteries and employ a simplified production process to keep costs low.
The Model Q is anticipated to contribute to maintaining Tesla's delivery numbers in 2025, despite a projected overall decline in EV sales. Deutsche Bank's analyst, Edison Yu, forecasts Tesla's Q2 2025 sales to reach approximately $22.2 billion with automotive gross margins of 14% (excluding credits). For the full year 2025, total deliveries are projected to decrease by nearly 12% year-over-year.
Deutsche Bank projects Tesla's total vehicle deliveries for 2025 to be around 1.58 million units, reflecting the impact of the Model Q and other factors. Sales in the second half of the year would need to be higher than in the first for this decline to happen, as Tesla delivered nearly 750,000 vehicles in the first half of the year.
Investor questions about new Tesla models, including the Model Q, are expected to be addressed on Wednesday. Additionally, preparations for an affordable Tesla model in the first half of the year are reportedly on track.
In summary, the Model Q is expected to be a compact, cost-efficient EV that will hit the market in Q4 2025. With a projected price under $30,000, the Model Q aims to compete with vehicles like the Volkswagen ID.3 and BYD Dolphin. The vehicle's use of lithium iron phosphate batteries and simplified production process are designed to keep costs low and make it a competitive offering in the EV market.
The Model Q is anticipated to bring competition to the EV market, as Deutsche Bank analysts predict its price to be under $30,000. Tesla's finance department has identified technology advancements such as lithium iron phosphate batteries and simplified production processes as essential factors for the success of the business strategy in this new product launch.
