Tesla to launch new affordable EV tomorrow: What to expect
What's the story
Tesla has teased an upcoming event on October 7, sparking speculation about the possible unveiling of an affordable electric vehicle (EV). The company shared a nine-second video on X (formerly Twitter), showing a shadowy silhouette of a car with glowing headlights and the message 'See you Tuesday.' The teaser ends with the date 10/7.
Market expansion
New EV could be a cheaper version of Model Y
The teaser comes at a time when Tesla is under pressure to expand its portfolio beyond premium models. According to Reuters, the company is working on a stripped-down version of the Model Y, which would be about 20% cheaper to produce than the refreshed version. Tesla has also confirmed that it has completed "first builds" of this vehicle and plans to start sales in Q4 2025.
Market impact
Tesla to penetrate the mass-market segment
This upcoming Tesla model is expected to be a game-changer, with projections indicating it could scale up to 250,000 units annually in the US by 2026. This would allow Tesla to penetrate the mass-market segment and compete with lower-cost EVs from competitors. The move comes after the expiration of the $7,500 US EV tax credit on September 30, which could greatly influence consumer behavior.
Sales strategy
Record quarterly deliveries for Tesla
Despite the tax credit expiration, Tesla reported record quarterly deliveries for the three months ending in September. Analysts believe that avoiding the loss of this incentive could force Tesla to rethink its pricing strategy and speed up the launch of more affordable models. The company's push for budget-friendly EVs is part of a broader strategy to expand its market reach and cater to a wider range of consumers.