Get ready for Tesla 2.0! $45k Teslas based on Model Y and Model 3 only months away as Musk takes aim at Chinese rivals: Reports

Tesla is set to finally refresh its ageing lineup, with the EV giant planning newer and cheaper models that will arrive next year to level the playing field with Chinese brands like BYD, according to new reports.

US industry bible Automotive News reports that the new models will use the Model Y's platform - suggesting they will launch with the ever-popular SUV body styling - but will significantly undercut the brand's current lineup.

The plan, the brand says, is to take the fight to its core Chinese rival BYD, which has just increased its global sales target to match that of Ford's on the back of its ongoing success.

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According to the publication, the new model won't be the cut-price Tesla Model 2 we've been waiting for, but will instead wear a sticker price of more like US$30,000 or AUD$45,000.

Still, that would make it the cheapest Tesla model in Australia by some margin, with the Model 3 starting at around $55k and the Model Y starting at $56k.

In fact, that pricing would put the Tesla on a collision course with everything from the BYD Dolphin to the Chery Omoda E5, giving the American brand a genuine answer to Chinese EV pricing.

Better still, there could be two new models next year, with some analysts telling Automotive News that they expect to see stripped-back models of both the Model 3 and Model Y.

"The lower-priced variant of the Model Y will begin production in April 2025," Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told Automotive News.

"While the starting price is said to be under US$30,000, significant differences between it and the Model Y, such as range and interior space, will be needed to not siphon off sales from the popular — and more profitable — Model 3 and Model Y."