Tesla CEO Elon Musk has been promising an affordable electric vehicle, likely priced at $25,000, as a way to broaden the appeal of plug-in vehicles. This next-generation vehicle is expected to be a crossover or hatchback, featuring design elements lifted from the Tesla Cybertruck. The promise of an affordable EV has been a long-standing one, with Musk first mentioning it in a 2018 interview with YouTuber Marques Brownlee.

At Tesla's first Battery Day event in 2020, Musk speculated that the company could eventually produce upward of 20 million of these vehicles in a year, roughly twice the current production of Toyota, GM, or Volkswagen. The company's executives have since spoken about a specialized manufacturing technique called the "Unboxed Process," which would allow Tesla to dramatically reduce the cost of manufacturing, enabling it to sell a vehicle at the $25,000 price point.

Recent reports suggest that Tesla is planning to launch a new compact crossover in 2025, with production expected to start in June of that year. The company has invited suppliers to bid on the project, forecasting production of 10,000 vehicles weekly. While Musk has warned that his timeline "should be taken with a grain of salt" due to the complexities of developing new manufacturing technologies, the company is pushing forward with its plans.

Tesla's new manufacturing process is expected to be a huge industrial breakthrough, enabling the company to die-cast almost the entire vehicle underbody as a single piece instead of building out about 400 parts using conventional car-building techniques. This process, combined with the "Unboxed Process," could significantly reduce costs and increase production of Tesla's electric vehicles.

The $25,000 vehicle is expected to have a futuristic design similar to the Cybertruck, which Tesla first revealed in 2019. The Cybertruck is set to begin production this year, with production-at-scale beginning in 2024. If successful, Tesla's next-generation vehicle could be a game-changer for the electric vehicle market, making sustainable energy more accessible to the masses.

However, it's worth noting that Musk has made promises before that he couldn't keep. In April 2024, Reuters reported that Tesla had canceled its plans to build a more affordably priced electric vehicle, instead focusing on an autonomous robotaxi. But Musk later clarified that the company was still committed to building more affordable electric vehicles, perhaps as soon as 2025.

As Tesla continues to work towards its goal of making electric vehicles more affordable, the company's next-generation vehicle is expected to be a major step forward. With its innovative manufacturing process and futuristic design, this vehicle could be a significant player in the electric vehicle market. Only time will tell if Tesla can deliver on its promise, but one thing is certain – the company is pushing the boundaries of what is possible in the world of electric vehicles.