We might as well forget about the once-rumored $25,000 Tesla, but hitting the $35,000 mark won’t be easy either.

Tesla said Wednesday that it has begun production of "a more affordable model." Why it matters: The automaker has long promised a cheaper EV, but has said little about it recently, fueling speculation that CEO Elon Musk had lost interest.

Elon Musk has finally confirmed that Tesla’s new ‘affordable’ electric car is just going to be the Model Y in a cheaper format. Musk has ended months of speculations and misinformation, which he partly created, about Tesla’s upcoming cheaper electric vehicle model.