Tesla has recently unveiled what appears to be a more affordable version of its popular electric vehicle, the Model Y. A video shared on the Chinese social media platform Weibo showcases a camouflaged Model Y, hinting at a simplified design aimed at making Tesla’s technology more accessible to a wider audience.
The footage, first highlighted by @TeslaTickerDE, offers a detailed glimpse of what could be Tesla’s next big release. The vehicle in question is believed to be a cost-effective variant of the Model Y, as confirmed by CEO Elon Musk during Tesla’s Q2 2025 earnings call. Production of this budget-friendly Model Y is set to commence in the fourth quarter of 2025.
Notable changes observed in the vehicle include:
- Simplified taillights without an LED light bar
- Exclusion of a rear passenger screen
- Usage of lower-grade interior materials
- Reduced storage space in the central console
- Painted surfaces instead of textured reflectors, reminiscent of the updated Model 3 Highland
Despite these alterations, the Hardware 4 (HW4) cameras remain intact, and the vehicle is outfitted with 19-inch wheels featuring Pirelli tires. The wheelbase closely resembles the current Model Y, although the headlight design appears to be more compact.
It is evident that Tesla’s primary objective with this simplified Model Y is to cut manufacturing costs and offer a more affordable price point. Speculations suggest that this stripped-down version could be priced below ¥200,000 RMB (approximately $28,000 USD or €25,000), catering to price-conscious consumers.
As the electric vehicle market becomes increasingly competitive, Tesla is striving to balance profitability with accessibility. The introduction of a cheaper Model Y aligns with the company’s efforts to attract a broader customer base, particularly in the wake of the impending expiration of the $7,500 federal EV tax credit on September 30, 2025. By providing a more budget-friendly option, Tesla aims to bolster demand and maintain its competitive edge in the evolving EV landscape.