Tesla’s long-rumoured affordable electric vehicle may have just made its first public appearance.
A new video posted to Chinese social media platform Weibo shows what appears to be a cut-down version of a Tesla Model Y, captured covered in camouflage wrap. As spotted by @TeslaTickerDE, the footage offers a first detailed look at what’s widely believed to be Tesla’s next big product — a simplified Model Y designed to be more accessible than any version before it.
The EV in the video doesn’t appear to be the larger Model Y L recently spotted in China, but rather the “low-cost” Model Y that CEO Elon Musk confirmed is already in early production during Tesla’s Q2 2025 earnings call earlier this week. Volume production is expected to begin in Q4 2025.
Visible changes to the vehicle suggest major cost-cutting measures:
The vehicle’s Hardware 4 (HW4) cameras remain unchanged, and it rides on 19-inch wheels with Pirelli tires. The wheelbase is nearly identical to the current Model Y, although the headlight design appears lower and more compact.
Tesla’s goal appears clear: reduce manufacturing costs and lower the price point. According to the Weibo post, this stripped-down Model Y could be priced below ¥200,000 RMB (around $28,000 USD or €25,000).
With Tesla under increasing pressure to maintain margins while making EVs more affordable, the timing of this low-cost Model Y aligns with broader efforts to capture price-sensitive buyers. The new, cheaper model will likely also help stoke demand in the U.S. once the $7,500 federal EV tax credit sunsets on September 30, 2025, giving Tesla a stronger value proposition even without subsidies.
