Apart from its Full-Self Driving technology, one Tesla (TSLA) product that has been the subject of CEO Elon Musk’s overpromise is a more affordable Tesla EV.
During Tesla’s Q4 2024 earnings call, Tesla CFO Vaibhav Taneja made a sly mention of it; however, Tesla fans got more excited when Deutsche Bank analysts dropped a bombshell in a December 2024 note.
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On December 9, Deutsche Bank analysts led by Edison Yu noted that Tesla would launch the “Model Q,” a more affordable model that sent Tesla sleuths into a frenzy online.
“The new Tesla model (we refer to as “Model Q”) should launch in 1H25 and will be priced <$30k including subsidies (i.e., $37,499 if US EV tax credit goes away),” Yu wrote in his note.
Although Musk previously mentioned that such a vehicle would be responsible for “20% to 30% vehicle growth” in 2025, no new metal has emerged. In fact, the only new metal to come out of Tesla recently has been refreshed iterations of the Model Y and Model 3.
Kia executives pose next to its new EV models and concept cars at its 2025 Kia EV Day. The automaker unveiled a series of entry-level electric vehicles in key segments.
Kia
Kia is coming for Tesla’s shortcomings
With Tesla’s affordable model left with more questions than actual cars, South Korean automaker Kia has been picking up where Tesla left off, introducing new models that undercut Tesla’s lowest-price offerings.
This week, the Hyundai Group automaker unveiled a series of fun and unique entry-level electric vehicles during its 2025 Kia EV Day in Barcelona, Spain.
These included the PV5, an electric minivan that comes in different commercial and civilian configurations, the EV2, a concept car previewing an electric subcompact SUV offering, and a new model that seeks to take on Tesla’s Model 3 in its most important markets.
Kia EV4 Sedan
Kia
Kia’s EV4: a cheaper, futuristic Model 3 competitor
The highlight of Kia’s keynote event was the introduction of the EV4, a compact electric sedan and hatchback meant to take on Tesla’s Model 3.
Kia plans to ship over the sedan models to its American consumers, but it insists that its long-range and eye-catching looks will win over buyers from the Musk side wherever it sells.
Underneath its cyberpunk-spaceship-esque skin, the clever Kia uses a smaller configuration similar to the upcoming Kia EV3 subcompact SUV. Buyers can choose between a 58.3 or 81.4kWh battery that sends 201 horsepower to the front wheels.
While its power numbers sound underwhelming compared to the Model 3, the EV4’s game is range. On its biggest battery, the Kia sedan boasts a range of up to 391 miles, compared to the Model 3 Long Range’s 363.
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The Interior of the Kia EV4
Kia
The EV4’s interior is covered with visually attractive materials and modern tech, including a 30-inch, triple-screen dashboard that allows passengers to watch YouTube, Netflix, and Disney+, play games, and even sing karaoke inside the car.
Unlike Tesla’s minimalist, screen-dependent interior, the Kia is modeled more like a ‘regular’ car, complete with rocker switches and buttons for essential functions on the dashboard and steering wheel.
Kia plans to begin EV4 production in South Korea in mid-March, while European and U.S. customers will have to wait until the second half of the year. Kia did not disclose any pricing for the U.S. market, but it expects to sell the EV4 in Europe for around €37,000 ($38,800).
Related: Tesla faces big challenge in key markets
Kia ramps up EVs as rivals hunker down
At Kia’s EV Day, CEO Ho Sung Song saw slowing EV sales growth and the messy state of the world’s EV regulatory environment as an opportunity to show off the automaker’s resilience under pressure, aiming to emerge out of the dark as a leader in the space.
“As our industry faces increasing uncertainty, our competitors are revising their EV strategies,” Song said, as per Automotive News. “However, we at Kia, with our unwavering belief in electrification, have sought ways to shift market trends and fulfill our promise to customers.”
He also framed the EV4 and the other entry-level vehicles Kia showed off, the PV5 and future EV2, as more existential products than simple cars.
“We’re not just providing options, we are infusing electrification into customers’ daily lives, making EVs more accessible. We strive to democratize EV ownership, making the benefits of sustainable mobility solutions open to everyone.”
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