Sandy Munro once again had the opportunity to chat (video below) with Lars Moravy, Tesla’s Vice President of Vehicle Engineering, as well as Franz Von Holzhausen, Tesla’s Chief of Vehicle Design. This time, rather than focusing on the improvements to the refreshed Model Y and all the new engineering behind it, the focus was on Tesla’s autonomous ambitions.
In this case, the Cybercab and Robovan were the key highlights, with a distinct focus on the Cybercab. With that all said, let’s dig into all the fun new stuff. You can check out the entire video at the end of the article.
Cybercab Unboxed Process
The Cybercab will be the first of Tesla’s vehicles to use their new unboxed assembly process, which builds vehicles in parallel sections, and then brings them together all at once for final assembly. Traditionally, vehicles are assembled from the ground up, and sometimes even disassembled for parts of production to take place.
This innovative method involves using a big rear and front casting, brought together by a structural battery pack on the floor. The door rings are hot-stamped and laser-welded to form the side shell of the Cybercab, resulting in a very rigid structure that can also absorb crash impacts due to its unique manufacturing.
Paint-Free Panels
We’ve already talked about the Cybercab’s unique paint-free panels, but we’ve never heard until now exactly how Tesla intends to manufacture them. Tesla will inject colored PU plastic onto the backside of another plastic part (formed from various processes) and then ultrasonically weld that entire piece to an inner part.
That essentially combines multiple parts into one smooth piece that is easy to repair - because all you have to do is remove the entire panel - it just comes off as the interior fasteners are removed. There is no subframe holding it together - instead, the subframe is part of the panel.
The only area of the vehicle that will have any paint will be the hot-stamped door rings - which will be painted to improve corrosion resistance to protect the steel.
Aerodynamics
Aerodynamically, the Cybercab boasts the largest aero-cover-to-wheel ratio of any Tesla vehicle. This updated aero cover improves efficiency, even with the Cybercab’s relatively large tires—chosen to reduce rolling resistance. Interestingly, the impact of unsprung weight on efficiency is minimal compared to the benefits of improved rolling resistance and aerodynamics.
Another key to the aerodynamics is the teardrop shape of the Cybercab itself. With its low profile and smooth shape, it is extremely aerodynamically efficient. While neither Sandy nor Lars delved into drag coefficients, we expect it will likely be more efficient than the Model 3’s already fantastic Cd of 0.219.
Range and Battery Pack
Tesla currently has prototypes undergoing real-world testing at Giga Texas to evaluate range and efficiency. The goal is to ensure the vehicle can operate throughout an entire day in the city before returning to charge.
Tesla is targeting a battery pack under 50kWh, delivering close to 300 miles of real-world range—an impressive efficiency of around 166Wh/mi, even outperforming the Model 3’s lowest at 181Wh/mi.
When Does It Arrive?
So, with all that new knowledge - when does the Cybercab arrive? Well - the prototypes for the June Robotaxi network deployment in Austin are getting prepared now - but Tesla expects to begin production and sales sometime in the first half of 2026.
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During the Q4 2024 Earnings Call, Elon Musk confirmed that Tesla’s next-generation affordable vehicle is set to launch in the first half of 2025. Now, more than three months into 2025, Tesla may be just a few months away from unveiling their next-gen model.
Surprisingly, details remain scarce—no major leaks, early sightings, or concrete reveals. That hasn’t stopped speculation, though.
Project Redwood
Internally, Tesla refers to the project as Project Redwood, while externally, fans and skeptics alike have dubbed it the Model Q or Model 2. A Chinese tech outlet leaked some details back in December, suggesting a vehicle sized somewhere between a MINI and a Model 3.
That estimate aligns with expectations for Tesla’s compact, mass-market EV, but many questions remain. Where will Tesla build it? Will it share parts with other models? And when will customers finally get their hands on it?
We have some ideas on how to answer these questions—and more. Some of this information comes from past Tesla events, such as the “We, Robot” autonomy event and previous earnings calls.
As always, we’ll cite sources where possible and point out where we’re making informed guesses or speculating.
Based on the Cybercab
@DominicBRNKMN/X
Tesla plans to build the Cybercab and the next-generation vehicle at Giga Texas. Initially, both were slated for production at Giga Mexico, but with increased tariffs under the new administration, those plans fell through. As a result, the two vehicles will likely be built side by side, making it essential for Tesla to share as many components as possible.
Just as the Model 3 and Model Y, as well as the Model S and Model X, share numerous parts, the next-gen vehicle is expected to have a significant overlap with the Cybercab. Both are designed for inner-city travel and built with affordability in mind.
However, this doesn’t necessarily mean the next-gen vehicle will resemble the Cybercab. Instead, it will likely use similar components, such as a single lower-horsepower rear motor, a smaller battery pack, and a more compact frame. By streamlining parts production, Tesla can drive down costs to make both the Cybercab and the next-gen vehicle financially viable.
One key objective is ensuring that every Tesla product feels like a premium purchase—delivering more value than its price suggests. To achieve this, Tesla has been exploring new materials and innovative combinations to improve durability, design, and overall build quality, with the next-gen affordable vehicle being no exception.
Paint-Impregnated Panels
The Cybercab is using unique paint-impregnated plastic panels for its body shell—designed to be easy to produce, customize, and replace. The best part is that nicks and scratches are far less noticeable since the paint runs through the material. This makes repairs and replacements quick and hassle-free in case of accidental damage.
While the Cybercab will only come in the gold color we’ve seen, Tesla is expected to offer multiple variants and color options for the next-gen model. Given how striking the Cybercab’s base color already looks, there’s a strong potential for new finishes and textures unlike anything seen before.
City-Range
Not a Tesla App
At the We, Robot event, Tesla shared additional details about the Cybercab, and we used that information to estimate its battery size. Based on our findings, we estimate the battery pack to be between 51.6vkWh and 74.6vkWh, which would give the Cybercab an estimated range of 220 to 270 miles, assuming it achieves the 5.5 miles per kWh Tesla mentioned.
Tesla also confirmed during the Q3 2024 Earnings Call that the Cybercab will feature a more power-efficient powertrain, improving its efficiency over current models. This powertrain is likely to be shared with the next-gen model, meaning it will also see a lower miles per kW metric.
Wireless Charging
We don’t believe that Tesla will produce the next-gen model with wireless charging, like the Cybercab. Implementing wireless charging is expensive, and currently, the Cybercab is the only known vehicle capable of using it. The Cybertruck has the necessary receivers, but the feature hasn’t been implemented yet, but may be available as a retrofit.
Tesla has already said they plan to roll out wireless charging at select V4 Superchargers in the future, but these will likely be aimed at the Cybercab and Tesla’s other flagship models. This means that the upcoming Model S and Model X refresh could include wireless charging, but it may remain exclusive to higher-end models before trickling down to the rest of the lineup, due to cost.
Price
Tesla’s next-gen model has often been referred to as the “$25,000” model, however, we need to understand that was more than four years ago. Tesla has been mum on the price point of the vehicle, except for the $25k price tag that was shared back in 2021.
We believe Tesla will launch its next-gen vehicle for about $30k before any incentives. Once you account for gas savings and potential incentives, this car could sway a lot of customers due to price alone.
Release Date
Tesla previously hinted at a special event tied to its latest referral rewards system, which we believe may coincide with the unveiling of the next-gen affordable model.
With just a couple months left until until the midway point of 2025, it may not be long before we find out more details about this lower-cost vehicle.
We’re excited to cover the event in person, so if you’re considering buying a Tesla, don’t forget to check out our referral codes.
According to a statement from a senior Tesla executive obtained by Chasing Cars, Tesla plans to pull back on its current pricing strategy - which includes regular vehicle price changes. The change will take effect in Australia, at least, but potentially in the wider Asia-Pacific market.
This new pricing strategy is a big change to Tesla’s existing philosophy, which has been to adjust pricing based on market conditions. This meant regular vehicle price changes - sometimes multiple changes for the same vehicle within the same month.
Stable Pricing
This new “stable pricing” scheme will begin once the regular version of Tesla’s Refreshed Model Y begins shipping in Australia, which is expected to be sometime this summer.
One possible reason for these changes is consumer sentiment. It’s hard to commit to a big purchase—especially a vehicle—when prices can drop or rise by $5,000 or more overnight. That uncertainty was on full display in December 2022, when Tesla slashed Model Y prices after the pandemic-driven supply chain issues.
While most price adjustments have been smaller, typically between $1,000 and $2,000, they still create stress for buyers trying to secure the best deal.
Another potential reason for getting rid of evolving prices is rising competition from China’s low-cost EVs. Tesla may be avoiding a race to the bottom, where Tesla and Chinese competitors get into an intense price war, and margins become razor thin.
Chinese vehicles offer premium features at lower prices, thanks to heavy government subsidies. Markets like Australia, where Chinese EVs are gaining traction, are seeing increased interest in these more affordable vehicles.
Rest of the World
For now, this new price policy seems to be limited to Australia. It’s unclear whether Tesla plans to expand them across the Asia-Pacific market—let alone globally.
Tesla often discusses pricing strategies during financial events, so there’s a chance this topic could come up in the Q1 2025 Earnings Call—though that’s still some time away. Many customers would welcome more stable pricing, as it would make committing to a Tesla purchase easier. It would also prevent owners from getting upset when the price goes down shortly after they’ve purchased the vehicle.
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