A new report from China claims that Tesla briefed Deutsche Bank investors about launching an affordable EV called Model Q in the first half of 2025. Besides the fact that sharing information about future products is subject to strict regulation, the report appears to be regurgitating known information and speculations instead of bringing anything new.

A new report is making the rounds on social media, fueling speculations about Tesla's upcoming affordable EV. According to several Chinese publications, Tesla's investor relations guru Travis Axelrod discussed Tesla's compact EV plans in a meeting with Deutsche Bank investors. The report claims the model, called "Tesla Model Q," will launch in the first half of 2025 with technical details that appear to confirm previous rumors.

Before delving into it, I want to start by saying that disclosing this type of information to select investors would be illegal, even if the information has already leaked in the public space. A public company can only make forward-looking statements, including about new products, through public announcements. Therefore, it's highly unlikely that any information that has not been communicated properly has been shared with Deutsche Bank in a closed-door meeting.

The report also states the new vehicle's name is Model Q. This is something that has been more of a meme referencing Tesla Q short-sellers than a real name. Although it's not unusual for Elon Musk to turn a meme into a real thing, there is no decision about the name of Tesla's affordable EV. The report appears to be mixing rumors and public statements made during Tesla's third-quarter earnings call and presenting them as new info.

For instance, the Model Q's price is estimated between $25,000 and $30,000 "post-subsidy," something Elon Musk stated about the Cybercab when asked during the Q&A session of the Q3 earnings call. The report also claims that the compact EV will launch in the first half of 2025. This is a misinterpretation of the Tesla Q3 2024 shareholder deck, which states that "new vehicles, including more affordable models, remain on track for start of production in the first half of 2025."

I wouldn't take it from this statement that affordable models will start production in H1 2025. Instead, this is about all the new vehicles Tesla is working on, starting with the refreshed Model Y. This will indeed begin production in the first half of 2025. Still, it's highly unlikely that all Tesla projects will begin production at the same time. The fact that no prototypes have been tested on public roads until now tells us everything we need to know about the compact EV's production timeline.

Other details in the report have been discussed before, and most are just speculations. These include the Redwood project codename, first reported in a January Reuters report. The new report also claims the so-called Model Q is projected to be "15% smaller and 30% lighter" than the Model 3, with an overall length of approximately 3,988 mm (157 inches). That would put it among the smallest EVs on the market (the Chevrolet Bolt is 4,166 mm/164 inches long) if true.