Just recently, an affordable Tesla Model Y prototype with camouflage was spotted in the Bay Area. Now, another affordable Model Y has also been photographed in new pictures, providing the first and clearest glimpse of how the vehicle will look and what it will be capable of.
The Tesla Model Y has always been the best-selling vehicle around the world, even topping the deliveries of the Tesla Model 3. However, with rivalry growing among cheaper EV manufacturers, especially in China and Europe, Tesla seems to be prepared to unveil a model that is cheaper and more cost-efficient.
The changes in the new spy shots are several. First, the headlights are now made as a one-unit element, and not split like the current styling of the Model Y trims. This not only makes manufacturing easier but also makes parts less complicated, which is also in line with the wider cost-cutting plan that Tesla is pursuing.
Goodbye Glass Roof, Hello Cost Savings
The most obvious of these is, perhaps, the fact that Tesla does not have its iconic glass roof that stretches across the entire car. The panoramic roof is frequently mentioned by current Model Y customers as a luxury feature; however, the less expensive model comes fitted with a simple metal roof.
The decision is strategic in nature: glass roofs are costly to make and install, whereas a conventional roof will reduce the cost of production and the weight of vehicles. Also, in tropical climates such as India, Southeast Asia, or the Middle East, a metal roof has a higher cooling efficiency for the cabins, which may be a selling feature.
First look at the new Cheaper Tesla Model pic.twitter.com/CMMXvVFtsx
— Tesla Owners Silicon Valley (@teslaownersSV) September 27, 2025
Downsizing Wheels for Practicality
Another modification to the new Model Y was the use of 18-inch wheels, a retreat compared to the entry-level Model Y RWD 19-inch wheels, which were also called Gemini wheels. Smaller wheels might not appear as aggressive, but they also help to make the car more efficient, less expensive to replace, and ride on coarse roads.
This implies that Tesla is not positioning the low-priced model in the show-room but in the realm of utility; targeted to buyers by focusing on aspects such as price, fuel-efficiency, and reliability rather than luxury.
How Affordable Could It Be?
The new affordable Model Y is highly rumoured to have a 50kWh battery pack. Today, the variants of Model Y come with a range of 260 to 330 miles (420 -530 km) using packs with a size of 60 kWh and above.
A 50 kWh pack would help Tesla save greatly on the cost of production, which will make the price of this vehicle start at between $33k and $35k.
The only potentially important factor in EV adoption is price. Breaking the psychological divide to the low-30K range means that the Model Y is no longer the aspirational EV, but a mainstream offering.
Government incentives: Although it might not be sufficiently low in the U.S., a federal EV tax credit of up to $7,500 might prove to be effective in bringing the entry price down to less than $27,000, cheaper than even many gasoline SUVs.
Global competitiveness: In Europe and Asia, where smaller EVs are already widespread, a more affordable Model Y will enable Tesla to retain its market dominance over Chinese rivals such as BYD, which control the low-cost EV market.
The Model Y has been Tesla’s global bestseller, but its pricing remains out of reach for many buyers. If the E41 enters the market at a significantly lower price point, Tesla could capture a new demographic: first-time EV buyers and budget-conscious families who might otherwise look to non-Tesla alternatives.
