207: Beyond the Hype: The Truth About Tesla Tiny Homes & Your Real Tiny Home Options

Home SellingSelling Real EstateCalifornia Real EstateReal Estate InvestingHome Buying 101

Aug 27

Tesla Tiny Homes? Debunking the Myth + Exploring Real Options

Tiny homes have been all over the headlines in recent years—partly thanks to viral posts about the so-called “Tesla Tiny Home.” But here’s the truth: Tesla has never produced or sold tiny homes. Back in 2017, they created a one-time promotional trailer in Australia to showcase their Powerwall solar technology. It wasn’t a home you could order, just a marketing piece. Since then, AI-generated images and rumors have fueled the idea of a Tesla-built house, but no such product exists.

So if you’ve been waiting for Elon Musk to deliver you a 400-square-foot futuristic pod, it’s time to reset expectations. But don’t worry—the tiny home movement is real, and you still have plenty of options.

What Counts as a Tiny Home?

According to Appendix Q of the building code, a true tiny home is 400 square feet or less, excluding lofts. Within that definition, there are three main categories:

Park Model RV-Certified Tiny Homes on Wheels (THOWS)
- Typically designed to be parked long-term
- Popular builders include Escape Traveler (Boho model ranging $52k–$89k) and Tumbleweed Tiny Homes (around $90k)
- Delivery and setup usually run $2k–$3k
Modular Tiny Homes on Foundations
- Built in factories and installed like a traditional home
- A well-known option is the Boxabl Casita, often marketed for affordability and efficiency
Site-Built Tiny Homes
- Constructed locally by contractors under traditional permitting rules
- Offers the most autonomy, but also the most site prep and permitting requirements

Costs to Expect

DIY Kits or Basic Builds: $35,000–$80,000
Luxury Builds: $100,000+
Site Prep & Utilities: $9,000–$34,000 depending on raw land conditions
Septic/Sewer Installations: $8,000–$20,000

Land prices themselves vary wildly. In some counties, you might find land as low as $2,000—but the key question is zoning. If the land isn’t zoned for an ADU, small dwelling, or modular install, your bargain lot may be useless for a tiny home.

Wheels vs. Foundations

THOWS (Tiny Homes on Wheels):
- Lower permitting hurdles, faster move-in, but ongoing parking challenges
- Best for flexibility, but less stability for resale and financing
Foundation Builds:
- Higher upfront site work (grading, septic, utility hookups)
- More expensive, but better for long-term value and appraisals

How to Avoid Tiny Home Scams
The growing popularity of tiny homes has also attracted scammers. Common red flags include:

Ads promising “turnkey” homes at too-good-to-be-true prices
Companies unwilling to provide permits, certifications, or references
Pressure to pay upfront without clear contracts

Rule of thumb? Verify, verify, verify. Call your city or county planning department, confirm zoning, ask about ministerial permit timelines, and only work with reputable builders.

Your Roadmap to a Real Tiny Home

Choose your format—wheels, modular, or site-built.
Call planning and zoning to confirm what’s allowed.
Price the home realistically—and remember that delivery, upgrades, and utilities aren’t included in the base price.
Validate the builder/company before handing over a deposit.
Plan for financing and insurance—especially if you’re going modular or site-built.
Schedule inspections and keep documentation for future resale.

Final Thoughts

The Tesla tiny home may be a myth, but the dream of tiny living is very much alive. With smart planning, zoning research, and careful budgeting, you can choose between RV-certified builds, modular factory homes, or custom site-built options that fit your lifestyle and investment goals.

Tiny homes aren’t just about downsizing—they’re about building a future that’s affordable, sustainable, and uniquely yours.

Check out this for more details on ADU state laws

listen to the full episode

on your favorite podcast streamer below.

-> Apple

-> Spotify

______________________________________________________________________

Extra Real Estate with Soul Links you can’t miss!

Are you SUBSCRIBED to our YouTube Channel?

Subscribe at https://www.youtube.com/c/LoriAlvarez and tell us you did by messaging us on our

Felt inspired by this episode? Let us know! We'd love to hear from you by leaving our Podcast a review. And you just might get a special shout-out on the podcast! Thanks for choosing to spend your time with us!
Want more behind the scenes?

Like our Real Estate With Soul, The Podcast Page on Facebook

Follow Real Estate With Soul on Instagram