Tesla may reveal more affordable versions of the Model Y SUV by the end of 2025, possibly masked under different labels or brands.
In a significant move towards making electric vehicles more accessible, Tesla has announced plans to introduce an affordable version of its popular Model Y SUV. According to a study by Deutsche Bank analysts, this new model will be more compact than previous models.
The first units of this unnamed affordable model have reportedly been produced, as confirmed by Tesla's Q2 2025 report. The vehicle, spotted in China, is covered in a camouflage wrap, but close-up shots reveal more details of the budget-friendly new car, which closely resembles the currently available Model Y.
CEO Elon Musk has confirmed that the spotted vehicle is "just a Model Y." However, the affordable Model Y will feature cost-cutting measures such as the removal of premium features like the glass roof, premium audio system, rear touchscreen, ventilated and power-folding seats, and advanced Autopilot.
The affordable Model Y will likely have a simpler exterior design with plainer bumpers, a simpler lighting design, smaller wheels, and fewer paint options. It is expected to have a smaller battery pack, reducing range but cutting costs. The interior will be more basic with less expensive materials and the omission of noise cancellation and high-end finishes.
Tesla aims to offer this budget Model Y around $30,000, significantly lower than the current starting price of about $37,490 for the standard Model Y variants. Volume production is planned for the second half of 2025, with a launch expected in Q4 2025.
Interestingly, Tesla plans to focus on producing existing models in Q3 before making affordable models "available to all" in Q4. Whether the affordable Tesla will have a completely new name or an addition like the six-seat Model Y L remains unclear.
The spotted vehicle's seats are fabric-covered, both front and rear, and the front headlights are separate. The rear of the affordable Tesla model lacks a continuous light bar and an infotainment screen for the second row, compared to the refreshed 2025 Model Y.
In summary, the affordable Model Y is essentially a pared-down version of the existing Model Y with fewer luxury features, simplified design, lower-cost materials, and reduced battery capacity to meet a lower price point, rather than a completely new model or platform. Tesla is set to make electric vehicles more affordable and accessible with this new offering.
- The affordable Model Y, reportedly produced and confirmed by Tesla's Q2 2025 report, will be introduced to the industry, aiming to make electric vehicles more accessible and available to all.
- The newly designed Model Y will contest in the automotive sector, featuring cost-cutting measures such as the removal of premium features like the glass roof, advanced Autopilot, and ventilated and power-folding seats.
- The affordable Model Y will have a simplified exterior, characterized by plainer bumpers, a simpler lighting design, smaller wheels, and fewer paint options, while the interior will be more basic with less expensive materials.
- To meet the lower price point, the vehicle will likely have a smaller battery pack, resulting in reduced range compared to other models in the technology-driven automotive industry.
