Tesla Set to Unveil a More Affordable Model Y After Federal Tax Credits End

Tesla has announced a presentation scheduled for October 7, widely believed to mark the debut of a lower-cost version of the Model Y.

October 7, 2025 at 1:13 PM / News

Tesla has confirmed plans for an October 7 event that analysts link to the possible launch of a more affordable Model Y. The move comes as the company seeks to strengthen its market position amid intensifying EV competition and the expiration of federal tax incentives.

On social media, Tesla shared a series of short teaser clips featuring headlights and rotating components — prompting speculation that an updated version of the crossover is on the way.

According to Bloomberg, the new trim could feature simpler materials and omit certain premium features, helping offset losses caused by the end of tax credits.

Industry sources expect the production cost of the new Model Y variant to drop by roughly 20% compared with the current version.

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