Electric Vehicle Landscape in 2025: anticipated release of electric models from Tesla, plus emerging "super-hybrids" from various brands.
Tesla's Affordable Electric Cars Set to Arrive in Europe and Beyond
In a significant move towards making electric vehicles (EVs) more accessible, Tesla is set to launch its most affordable compact electric crossover, the Model Q, later this year. The model, designed to compete with entry-level EVs like the Hyundai Kona Electric and Volvo EX30, is anticipated to slot below the Model Y in size and price.
Initial production of the Model Q began in June 2025, with volume production slated for the second half of the year. Elon Musk, Tesla's CEO, has confirmed availability starting in Q4 2025, aiming to launch before the EV tax credit expires at the end of Q3 2025. Production of the Model Q is expected to be linked to Tesla’s Giga Berlin (Germany) or Giga Mexico facilities, suggesting a European launch that should coincide closely with the global release timelines or follow shortly after production scales up at Giga Berlin.
Meanwhile, in Europe, the new Model Y is set to be released, with production starting at the German Gigafactory in Gruenheide this week. The new Model Y in Europe will be available in four versions, starting at around €45,000. The end of January could be the sales start date for the new Model Y in Europe.
The European market is experiencing a shift towards EVs, as the EU target for fleet emissions of each manufacturer has been reduced to 94 grams of CO2 per WLTP kilometer for 2025. Established manufacturers will have to sell significantly more electric cars to avoid CO2 fines or pool costs, even if their combustion engine emissions remain the same.
This shift is reflected in the sales figures, as in China, sales of plug-in hybrid electric vehicles (PHEVs) have significantly increased more than those of purely battery-powered cars in 2024. Pure electric cars will contribute 20 percent of the required reduction in fleet emissions in the EU in 2025, according to T&E, while plug-in hybrids (PHEVs) will contribute 8 percent.
The push for more affordable EVs is not limited to Tesla. Transport & Environment (T&E) predicts that well-known manufacturers will launch seven new electric cars priced under €25,000 in Europe in 2025. Similar "Super Hybrids" are expected to hit the market in the West by 2025, with models from Mercedes, Land Rover, Toyota, Volkswagen, and Porsche mentioned as examples.
As the demand for combustion engine vehicles decreases, especially in lucrative markets like China and Europe, established car manufacturers are facing high fines if they do not significantly increase their electric car share or improve their CO2 balance. Some exceptions will be removed from the EU emissions target in 2025, and the €6,000 discount for pre-produced vehicles is no longer available.
In conclusion, the Tesla Model Q and the new Model Y are set to bring affordable, urban-friendly EV options to European markets around late 2025 or early 2026, aligning with Tesla’s goal of offering such vehicles internationally. The push for more affordable EVs is a global trend, with established manufacturers also launching new, competitively priced electric cars in response to the growing demand and stricter emissions regulations.
- The affordable Model Q, Tesla's new electric vehicle, is designed to compete in the market with other entry-level EVs like the Hyundai Kona Electric and Volvo EX30.
- The Model Q's production is connected to Tesla’s Giga Berlin or Giga Mexico facilities, suggesting a European launch that follows closely with the global release timelines or comes shortly after production scales up at Giga Berlin.
- Tesla's new Model Y, on the other hand, will be released in Europe and is anticipated to contribute significantly to the required reduction in fleet emissions in the EU in 2025.
- The European market is witnessing a shift towards electric vehicles, with established manufacturers needing to sell more electric cars to avoid CO2 fines or pool costs, even if their combustion engine emissions remain the same.
- Apart from Tesla, Transport & Environment predicts that several well-known manufacturers will launch seven new electric cars priced under €25,000 in Europe in 2025.
- As the demand for combustion engine vehicles decreases, particularly in lucrative markets like China and Europe, established car manufacturers are under pressure to either significantly increase their electric car share or improve their CO2 balance to avoid high fines.
