Tesla has been teasing the existence of an “affordable” model for years. The idea first surfaced in 2020 during a battery event, when CEO Elon Musk said denser batteries would allow the company to build a $25,000 car. Rumors of the mythical cheap Tesla stuck around until Musk squashed any plans of such a vehicle back in October, calling it “silly and pointless.”
The company hasn’t completely given up on breaking into a more affordable segment, telling investors it plans to launch cheaper models by the end of 2025. Tesla will reveal its first affordable model tonight—but it won’t be an entirely new car. As confirmed by Musk back in July, it’ll just be a Model Y with less standard equipment.
The Model Y in question should look a bit different, too, if these spy shots taken of an undisguised prototype turn out to be legit. These photos, published to X by user Ryan Mable and shared by The Verge, show a white Model Y with slightly revised fascias running on Florida manufacturer plates driving around near Tesla’s Austin, Texas headquarters.
How Different Will It Look?
The most obvious difference lies in the nose, where there’s no longer a lightbar uniting the two headlights. The car in these photos has that space occupied by an extended bumper area. The updated, slimmer headlights from the normal Model Y are still present, though. Out back, the central taillight has been replaced by what looks to be a black piece of plastic, and all badging has been removed. The tailgate piece has also been redesigned to reach over into the lower black plastic portion of the bumper, which looks kinda awkward.
@SawyerMerritt spotted an uncovered cheaper Model Y variant driving near Giga Texas pic.twitter.com/Fy6devXree
— Ryan Mable (@RyanMable) October 2, 2025
These images match up with a photo shared by The Tesla Newswire, a fan account on X that tracks Tesla happenings. The image, shared earlier this month, shows an identically restyled Model Y that was, according to that account, lifted from code within Tesla’s own website. It’s impossible to make any guarantees without an official announcement, but considering that, plus the manufacturer plate, this car is likely what we’ll be seeing revealed later tonight.
What Will The Cheap Model Y Be Missing?
Tesla hasn’t made any official statements with regard to standard equipment or specs, but that hasn’t stopped people from finding out what to expect. The Verge cites a hacker on X who goes by GreenTheOnly, who claims to have discovered exactly what the cheap Model Y will be missing compared to its more expensive counterpart in a tweet published last month, citing Tesla’s own firmware:
simplified fiberglass headliner
simplified cabin lighting (footwell only)
simplified seat controls (single axis)
no power mirror folding
no puddle lamps
no glass roof
no second row display
no tpms
simplified 18″ wheels— green (@greentheonly) September 20, 2025
In case you can’t see the above tweet, some subtractions to the cheap Model Y could include obvious cost-cutting moves, like no glass roof, no second-row display, a cheaper fiberglass headliner, no power-folding mirrors, simpler seat controls, and smaller 18-inch wheels. Weirdly, this hacker also reports that the cheap Model Y won’t have a tire pressure monitoring system, even though TPMS sensors have been mandatory in the United States since 2007. If I had to guess, it’s possible their data was tied to a car destined for sale outside of the U.S.
The hacker, as well as Electrek, say the affordable Model Y will also have a “downgraded” suspension setup. But while the hacker says there will be rear-wheel drive and all-wheel drive options, Electrek seems to think the car will be rear-wheel drive only. That is to say, we won’t know for sure just how much stuff has been taken out until Tesla reveals all the info.
How Much Will It Cost?
Tesla hasn’t released a number, per se, but its German CEO leaked a few details on the car yesterday ahead of tonight’s reveal, including some hints about its design and an approximate starting price. From German publication Handelsblatt:
The US electric car manufacturer Tesla plans to launch a light version of its Model Y this year. German CEO André Thierig announced this at an internal event on Monday at the Tesla plant in Grünheide. Series production and delivery will begin “in a few weeks.”
The Model Y Standard has a “completely redesigned front, completely new bumpers, a completely redesigned rear, and different lights. It simply looks like a different car,” Thierig said at the launch. Regarding the planned price, the plant manager said: “It will be about ten percent cheaper than the current Model Y.”
Let’s do the math here. The current Model Y starts at $44,990 before destination charges. Ten percent of that number is $4,499. Subtract that from the car’s MSRP, and you get $40,491. This lines up with the $40,000 starting price rumored by several outlets already. The lowest I’ve seen reported is $39,990, by that Tesla fan page I mentioned earlier.
The ironic part about all of this is that up until recently, the current Model Y was actually cheaper than this new model, thanks to the $7,500 federal tax credit. Previously, you could’ve gotten a nicer Model Y for less money. But now, because of the disappearing incentive, you’ll be paying more for a car with less equipment.
Would You?
It’s unclear right now whether Tesla will extend that $6,500 lease credit it came up with at the start of the month to owners of the cheaper Model Y. That would make the car way more palatable for buyers looking to save some cash. Because while $39,990 is certainly cheaper, it’s definitely not cheap. It’s also nowhere near that magical $25,000 mark promised by Musk all those years ago.
This begs the question: What would you be willing to pay for a stripped-out Model Y? I think that $35,000 mark is the sweet spot here; it would put the car right in line with cars like the Hyundai Kona Electric and the Chevrolet Equinox EV, two of the cheapest electric cars on the market. Otherwise, I don’t see a way to justify buying the Tesla over either of those cars (especially the Chevy, which gets over 300 miles of range).
Didn’t know a Tesla could be MORE austere.
What sucks is this. Even on the regular versions of the high trim Telsla’s there are no assist handles on the upper roof pillar like an even basic Mirage would have. Telsa’s are hard enough to egress as it is, those little handle assists would have really helped. I was ecstatic my family members sold their Telsa’s due to Musks. shenanigans and are on an Iconic streak. At least the Hyundai’s have assist handles above the doors. Not to mention ride better, are easier to egress, have more comfortable seating, and actually ride smooth. Their Tesla’s rode like grandpas old tractors!
No!
If i was forced to buy a Tesla,or any kind of electric car, that is probably possibly what I would buy. Throw in a lack of screens and actual wiper/indicator stalks and you’ve got a deal.
Would You Buy A
Stripped DownTeslaModel Y For $40,000?No.
This was going to be exactly my answer; cosigned.
Less power junk, smaller wheels, regular roof? I’d call those improvements but still a no.
Not regular roof.
Still a glass roof, but covered with fabric inside.
Because the poors don’t get to experience sunlight.
I read that article after this one and unfortunately cannot edit. Honestly that’s the worst of both worlds.
Come on now, poor folk don’t need no damm vitamin D.
We’ll just have to wait and see, but a friend bought an Equinox EV and it was a pleasant surprise. Not nearly as funky as any Tesla I’ve been in and quiet and comfortable to ride in. She loves driving it.
In any case, having to recently start making periodic 700+ mile drives each way, back and forth to attend to the needs of an elderly parent in assisted living, a PHEV would be perfect for me. But to replace a (bought with cash) sub-70K mile ’17 Accord with one would be a philosophical choice and not a wise one financially.
No, but I’ve been a Tesla hater long before Elon’s foray into the public sphere. I just can’t stand the tablet in the middle and their interiors. That also being said, surprised TPMS is eliminated, my car form 07 had that standard, surely that’s something that hardly affects the price.