Tesla is expected to unveil a lower-cost version of its best-selling Model Y SUV on Tuesday, as the electric vehicle maker seeks to revive declining sales and recover market share in an increasingly crowded global market, Reuters reports.
Chief Executive Elon Musk has long promised affordable mass-market vehicles, though he cancelled plans last year for a new $25,000 electric car. The model anticipated this week is understood to be a more affordable variant built on Tesla’s existing manufacturing and design platforms.
Over the weekend, Tesla posted two teaser clips on X that sparked excitement among fans. One showed a pair of headlights emerging from darkness, while another displayed a spinning wheel followed by the date «10/7», hinting at a October 7 reveal.
— Tesla (@Tesla) October 5, 2025
— Tesla (@Tesla) October 6, 2025
Expectations Build Despite Lack of Event
Tesla has not confirmed an in-person event, unlike its previous major launches, yet analysts and investors are convinced that an announcement is imminent. Key details such as price, driving range and cost-saving measures remain unclear.
Musk previously said the car would be priced below $30,000, including U.S. electric vehicle tax credits. However, when the $7,500 subsidy ended last month, effective prices rose, temporarily boosting quarterly sales to record levels. Analysts expect a slowdown unless the new affordable model boosts demand.
«The desire to buy the car is very high,» Musk said during Tesla’s second-quarter earnings call in July. «It’s just that people don’t have enough money in the bank account to buy it. So the more affordable we can make the car, the better.»
Striving to Stay Competitive
Musk initially said production would begin by the end of June, but Tesla later clarified that it had only completed «first builds» and that customer deliveries would start in the final quarter of the year.
Tesla continues to face headwinds from a maturing lineup and intensified competition, particularly in China and Europe. Musk’s outspoken political views have also weakened the company’s brand loyalty in some markets.
Earlier this year, Tesla launched a refreshed Model Y featuring updated light bars and a rear touchscreen. Meanwhile, the company has shifted focus toward artificial intelligence, including robotaxis and humanoid robots, while pledging to expand its affordable vehicle lineup.
Sources told Reuters that Tesla also plans to introduce a simplified version of its Model 3 midsize sedan. Affordable models are seen as crucial for Tesla to reach its ambitious target of producing 20 mln vehicles within the next decade — one of the performance goals tied to Musk’s proposed $1 trln pay package.
