Tesla is set to finally reveal its cheaper EV today, a stripped down version of its best-selling Model Y SUV.
Per Bloomberg, the new Model Y variant will “lack certain features and use less premium materials to offset the loss of the up to $7,500 federal tax credit,” per sources. The federal EV tax credit expired in the US on September 30, and CEO Elon Musk said in company’s second quarter earnings call that the cheaper Model Y would come out after expiration of the tax credit.
Tesla stock gained more than 5% on Monday after the EV maker posted gifs on Sunday of a spinning company logo with the date “10/7” and what appear to be car headlights shining through smoke.
Reuters reports that neither Tesla or its prominent online followers have said an in-person event is in the works, in contrast to previous major Tesla launches. The expectation is Tesla may have a smaller online event or post content of the new vehicle online.
Expectations for the vehicle include front lighting without the full light bar, a metal roof instead of glass, smaller infotainment screens inside and likely lack of second row screen, and removal of ambient lighting and some sound deadening material. There is also an expectation that Tesla has wrung out costs from its batteries and electric motors to make the vehicle cheaper.
Tesla said following Q2 earnings that the first builds of a more affordable model occurred in June, with volume production planned for the second half of 2025.
Tesla’s release of the cheaper Model Y is expected to help grow volumes for the automaker that has seen sales dip in recent quarters, although Q3 sales jumped as buyers bought EVs ahead of tax credit expiration.
Last quarter Tesla CFO Vaibhav Taneja said he expected a pull forward of sales in Q3 because of expiration, and the numbers back up that claim.
Tesla reported Q3 deliveries came in at 497,099, easily topping Bloomberg consensus estimates of around 439,800 and the 462,890 units delivered a year ago. Tesla said Q3’s total was a new quarterly record for the company.
Tesla is set to report full Q3 results on Oct. 22 after the closing bell, with the company’s annual shareholder meeting to follow on November 6.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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