A cheaper Tesla car dream reignites by company CEO Elon Musk. Will it come to India?
- Tesla is planning to launch its much anticipated and much-hyped cheaper electric car by June 2025.

Tesla is planning to launch its much-hyped and much-anticipated affordable electric car, which will come as an even cheaper EV from the automaker. As Tesla CEO Elon Musk has hinted, the EV manufacturer is planning a major product offensive, and a key part of that will be the upcoming car, which is likely to be christened Tesla Model 2. Also, it could be a cheaper variant of existing Tesla cars, like the Model 3 or Model Y.
While Tesla has not revealed the finer details about the upcoming EV, it has hinted that the new electric car would utilise aspects of the next-gen platform as well as current platforms and will be produced on the same production lines as the current line-up. Tesla has revealed that the cheapest car from the brand to date will arrive by June 2025. Besides that, Tesla is also gearing up to launch the fully autonomous Waymo-rivalling Cybercab service in the US in June this year.
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Will Tesla launch its cheapest car in India?
Tesla's cheapest car makes a strong case for India launch. The electric car manufacturer is long anticipated to enter the Indian passenger vehicle market, where electric cars are finding an increasing footprint. However, despite moves from the US auto major as well as the Indian government, Tesla is yet to launch its cars officially in India. However, the cheapest car from the brand could be a viable product to start its journey in the country.
Also Read : Upcoming cars in India
Interestingly, Elon Musk's Tesla resumed its search for showroom space in New Delhi, late last year in December, hinting at the sign that the auto company is rethinking entering the Indian market after putting its investment plans on hold earlier in 2024. In April 2024, Musk said that he would meet Prime Minister Narendra Modi during a trip where he was to potentially announce an investment of $2-3 billion in India. However, the Tesla CEO called off his visit at the last moment after the company decided to sack 10 per cent of its staff amid plunging sales.
Union Budget 2025 paved way for Tesla?
While presenting the Union Budget 2025 earlier this month, Union Minister for Finance, Nirmala Sitharaman, announced that the tax rate on luxury cars priced above $40,000 has been slashed to 70 per cent from 125 per cent that was levied previously. She also announced that basic customs duties for lithium-ion batteries used for electric vehicles in India have been completely scrapped.
This move of tax reduction and customs duty removal could be an incentive for automakers like Tesla, as the electric car maker plans to launch its India operations by bringing the CBU models initially while also hinting it would start producing EVs locally at a later phase.
Check out Upcoming EV Cars in India.