Tesla is set to finally reveal its cheaper EV today, a stripped-down version of its bestselling Model Y SUV.
Per Bloomberg, the new Model Y variant will “lack certain features and use less premium materials to offset the loss of the up to $7,500 federal tax credit.” The federal EV tax credit expired in the US on Sept. 30. CEO Elon Musk said in the company’s second quarter earnings call that the cheaper Model Y would come out after the tax credit expires.
Tesla stock gained more than 5% on Monday after the EV maker posted gifs on Sunday of a spinning company logo with the date “10/7” and what appear to be car headlights shining through smoke.
Reuters reports that neither Tesla nor its prominent online followers have said an in-person event is in the works, unlike previous major Tesla launches. The expectation is that Tesla may have a smaller online event or post content of the new vehicle online.
Expectations for the vehicle include front lighting without the full light bar, a metal roof instead of glass, smaller infotainment screens and likely no second-row screen, and removal of ambient lighting and some sound-deadening material. It is also expected that Tesla has wrung out costs from its batteries and electric motors to make the vehicle cheaper.
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Tesla said following Q2 earnings that the first builds of a more affordable model occurred in June, with volume production planned for the second half of 2025.
Tesla’s release of the cheaper Model Y is expected to help grow volume for the automaker, which has seen sales dip in recent quarters, although Q3 sales jumped as buyers bought EVs ahead of the tax credit expiration.
Last quarter, Tesla CFO Vaibhav Taneja said he expected a pull forward of sales in Q3 because of the tax credit expiration, and the numbers back up that claim.
Tesla reported Q3 deliveries came in at 497,099, easily topping Bloomberg consensus estimates of around 439,800 and the 462,890 units delivered a year ago. Tesla said Q3’s total was a new quarterly record for the company.
Tesla is set to report full Q3 results on Oct. 22 after the closing bell, with the company’s annual shareholder meeting to follow on Nov. 6.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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