Investors waiting for a lower-priced Tesla just got clarity after Elon Musk revealed the budget model is simply a more affordable version of the Model Y, www.naijnaira.com reports.
During Tesla’s Q2 earnings call, Musk responded to analyst questions with a quip: “It’s just a Model Y. Let the cat out of the bag there. Dancing cat that can talk and sing and dance.” Business Insider was the first to report Musk’s comments.
Tesla intends to make this cost-friendly version widely available by the end of 2025, according to Lars Moravy, VP of vehicle engineering.
No further specs or pricing details were provided, and Tesla hasn’t commented beyond what was shared during the earnings call.
Musk said affordability remains the biggest barrier for most potential EV buyers, emphasizing that “they just don’t have enough money in their bank account.”
He added that Tesla is focused on keeping the Model Y price down while building features that help customers recover costs, like its self-driving capabilities.
“If people can rent out their cars and earn money when not using them, that’s a game changer,” Musk told investors.
Tesla expects owners in the U.S. could start monetizing their vehicles by next year through autonomous fleet participation.
Earlier this year, Musk predicted full self-driving without supervision could be active in several U.S. cities before 2026.
He likened it to Airbnb, saying the ability to rent out an unused vehicle will significantly reduce ownership costs.
The Model Y debuted in 2020 and remains a key product for Tesla, though competition has intensified, especially from Chinese brands.
In January, Tesla released a refreshed version of the Model Y in major markets, including the U.S., China, and Europe.
Despite strong global performance in 2023, Tesla saw a decline in China, selling 129,000 vehicles in Q2 2025—a nearly 12% drop from the year before.
Rivals like Xiaomi have surged ahead; its YU7 SUV, priced at $35,000, received over 200,000 orders within three minutes of launch in June.
Tesla analysts believe that introducing a cheaper EV is critical to retaining market share against aggressively priced Chinese models.
The base Model Y currently starts at $36,760, slightly above Xiaomi’s YU7, making Tesla’s affordability play a timely strategy.
Article updated 1 day ago. Content is written and modified by multiple authors.
