Electric carmaker Tesla, which has struggled with falling sales in recent months, is expected on Tuesday to unveil a more affordable version of its best-selling SUV, the Model Y — a move aimed at reversing the negative trend and regaining shrinking market share amid growing global competition.
Tesla CEO Elon Musk has for years promised affordable mass-market cars. The car expected this week will be an “affordable” model built on existing production and design platforms. Last weekend Tesla posted two videos on X that excited fans: one showed headlights in the dark, and the other showed a wheel spinning for a few seconds, ending with “10/7” (the US date format for 7 October).
Unlike previous major launches, neither Tesla nor media figures close to the company have mentioned an in-person launch event. Even so, analysts, investors and fans expect fresh news. The key questions concern the car’s price, range and cost-cutting efforts.
Late last year Musk said the price would be below the “key threshold” of USD 30,000 (including US tax incentives for EVs). However, since the end of last month, with the USD 7,500 credit abolished, effective car prices have risen. This drove record quarterly sales, but sales are expected to fall for the rest of the year unless the new affordable car is launched.
