Elon Musk has officially confirmed that Tesla’s new ‘affordable’ electric car will be a cheaper version of the Model Y. This announcement comes after months of speculation and misinformation surrounding Tesla’s upcoming more budget-friendly electric vehicle model.
Last year, Tesla had hinted at the launch of new affordable models in the first half of 2025. While we are already past the first half of the year, Tesla recently confirmed that the “first build” of the new model was produced in June and is set to launch later this year.
During a shareholders’ call following the earnings results, Tesla was questioned about the design of the new affordable model. Initially, Tesla’s CFO, Vaibhav Taneja, stated that they wouldn’t disclose details about the design. However, Musk intervened and revealed that the new vehicle is essentially a Model Y.
It has been reported that the upcoming “new affordable models” from Tesla will be stripped-down versions of the Model 3 and Model Y, featuring fewer features such as no rear screen and cheaper materials. This information has been circulating for some time, despite initial denials from Musk regarding reports of a canceled “$25,000” EV model last year.
In early 2024, Musk made the decision to cancel two cheaper vehicle programs, codenamed NV91 and NV92, which were based on a new vehicle platform intended for the Cybercab. Instead, Tesla opted to utilize the existing Model 3 and Model Y production lines to develop more affordable versions of these vehicles.
The primary aim of the more affordable Model Y is to broaden the market by making the vehicle accessible to a wider audience. Musk has indicated that the vehicle is expected to go on sale in Q4 of this year.
In terms of changes to expect with the more affordable Model Y, it is likely that Tesla will opt for cloth materials instead of vegan leather, eliminate features like the rear display and ambient lighting, and possibly downgrade the audio system. Exterior lighting features, such as light bars, may also be omitted, and there could be adjustments to the powertrain, potentially featuring a less powerful RWD motor.
In conclusion, the confirmation that Tesla’s new affordable electric car will be a cheaper version of the Model Y brings clarity to the rumors and speculations that have surrounded the vehicle. The upcoming Model Y is expected to cater to a broader audience by offering a more budget-friendly option while still maintaining Tesla’s commitment to innovation and sustainability.
