The new Tesla’s affordable Model Y has been in the news for several days now. Each day passing, new leaks and rumours are popping out, showing the immense anticipation of the new variant. Now, new drone videos shot outside Tesla’s Fremont Factory by the YouTube channel Met God in Wilderness depict a camouflaged black-and-white vehicle running on the track beside the plant.
The video shows a small, Beetle-like crossover alternating between launch and stopping to follow a similarly camouflaged Cybertruck, leading to buzzing speculation as to what Tesla would be doing next.
Viewers are surprised, with some guessing that the prototype is a budget, stripped-down Model Y, and others theorizing the prototype could be the long-rumored Performance variant of the redesigned Model Y.
Tesla has been teasing the idea of launching cheaper models, previously codenamed NV91 and NV92, which were previously discarded in favor of drawing on the current Model 3 and Model Y lines. CFO Vaibhav Taneja even verified that the manufacturing of cheaper models- based on the design of Model 3/Y – will begin toward the end of June 2025. In the meantime, VP Lars Moravy has made it clear that the models about to enter the industry will have the same shape as the vehicles introduced nowadays, utilize the same assembly lines, and be affordable.
What the Prototype Reveals (And What It Hides)
There are subtle differences to the standard Model Y that are hinted at in visual clues. Other edges have the roof just a bit narrower and shorter dimensions, which can be observed during several flyovers on April 17 and 24, which means that the building could be undergoing a redesign. Even a couple of outlets refer to the prototype as being shorter and more stocky, furthering the impression of the pared-back model.
However, the front and rear coverage show a counter-narrative: the appearance suggests this may be the much-vaunted Model Y Performance edition, given that it is the only version that is not in production since the recently upgraded design of the Model Y. The performance argument could be pointed out by high-end extras such as color-coded door handles, a rear spoiler, and an all-glass roof visible under the camouflage.
Tesla itself aimed for a low EV price at $25,000, but instead shifted to using extant Model 3/Y lines to keep costs in that range. Recently, the Fremont site has been experiencing underutilization, which means that new variants mean strategic transformation in ensuring maximum output and efficiency.
What This Means for the EV Market
Tesla has yet to announce prices or launch dates officially, but the stripped-down features suggest that it could be producing a model much cheaper than anything currently offered by Tesla.
As the world is fast adopting the usage of electric vehicles, there is also an emerging trend of affordability becoming a significant factor when deciding on an EV purchase. By launching a cheaper, but stripped-down version of Model Y, Tesla would introduce the company to a wider audience, which values the basic, improved performance and the range more than the luxury features.
The plan resembles the one used by Tesla in the case of the Model 3, which was also launched as a low-cost Standard Range Plus product after the luxury version was released.
