Image: Tesla
Tesla’s long-rumoured lower-cost Model Y has been spotted completely uncovered for the first time, confirming real-world validation testing of the vehicle is now underway.
The sighting comes from @RyanMable on X, who captured images of the cheaper Model Y variant driving on State Highway 130 near Gigafactory Texas. The prototype features a pared-down exterior compared to Tesla’s current Model Y lineup, with the front light bar notably absent and replaced by individual headlights.
This marks the first time the new Model Y has been seen on public roads without camouflage, hinting that Tesla is edging closer to launch. Real-world validation testing typically takes place in the final stages before a production ramp. Earlier this week, a camouflaged prototype was spotted on the streets of California, suggesting Tesla is prototyping the new vehicle at its Fremont factory as well. With this Texas sighting, however, it appears the company is also preparing to produce the new model at Giga Texas.
References uncovered in Tesla’s website backend earlier this week indicate the new variant — internally code-named “E41” — is expected to be marketed as the “Model Y Standard” with a starting price of $39,990. While both the name and price could be placeholders, the new trim would represent a major step toward making Tesla’s best-selling EV more accessible.
According to leaked specs and details, the Model Y Standard will feature a refreshed front fascia with single-piece headlights (as can be seen in the latest photos), a front bumper camera, and no light bar across the nose. Tesla has also swapped the panoramic glass roof for what it calls a “closed glass roof.”
Inside, the cabin will have a simplified design with textile décor, a manually adjustable steering wheel, and second-row manual air vents. The second-row touchscreen is gone, along with premium touches like the HEPA filter, but the central 15.4-inch display remains. Cargo capacity comes in at 75 cu. ft., slightly less than the Long Range version.
During Tesla’s Q2 2025 earnings call, CEO Elon Musk confirmed production of the cheaper Model Y had technically already begun, with a full ramp-up scheduled for the fourth quarter of this year. With sightings in both California and Texas, it looks like Tesla is right on track to hit that timeline.
What do you think of Tesla’s new, lower-cost Model Y? Do you think Tesla is gearing up for a Q4 launch in the U.S.? Let us know in the comments below.
