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Tesla is working on a $25,000 hatchback with new battery tech

The hatchback is expected to release in 2023.

autocar's imagining of the rumored tesla hatchback
Image: Autocar

Tesla is working on an affordable hatchback to add to its range. That would give it a vehicle to compete against even more of the traditional car market, with an estimated $25,000 price in the US.

The hatchback is expected to release in 2023, with some new battery tech which makes Tesla able to get down to that tiny price.

Those batteries were announced last year at Tesla’s annual Battery Day when CEO Elon Musk said, “One of the things that troubles me the most is that we don’t have a truly affordable car, and that’s something we will have in the future. For that, we need cheaper batteries.”

READ MORE: Elon Musk shuts down the idea of a $25,000 Tesla

Are those the batteries that Tesla was meaning to use in the Plaid Plus version of the refreshed Model S, which was supposed to have a 520-mile range? Possibly, which says good things about the potential range for the smaller hatchback when it’s available.

Musk has previously said that any battery that can’t do 250 miles wouldn’t meet Tesla’s “standard of excellence,” so expect at least that many in the tank for the hot hatch.

The real surprise here is that the hatch is coming to the US at all. Most consumers here want midsized sedans, but the overall market has shifted recently. Even traditional carmakers like Mazda are phasing out midsized sedans, in favor of hatchbacks like the Mazda3 and crossover SUVs. This could make the hatchback Tesla a huge hit.

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