The brief clip, ending with the date “10/7,” was followed by a second post hinting at an event scheduled for Tuesday. Although Tesla did not confirm what it plans to reveal, market watchers believe the company will announce a lower-cost version of the Model Y, a long-awaited addition that could dramatically expand its customer base.
The speculation lifted Tesla’s shares by 3% in early trading Monday, as investors bet on a product that could reignite demand and bolster margins amid intensifying global EV competition.
Anticipation Builds for Affordable Model
Tesla has been working on a stripped-down version of the Model Y designed to be roughly 20% cheaper to produce than the refreshed model. The new variant, expected to scale up to 250,000 units annually in the U.S. by 2026, is viewed as crucial to maintaining Tesla’s dominance in the mid-market EV segment.
“Tesla is teasing something big,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “The price tag will be the real tell — it’ll show how far Tesla has pushed cost savings and how much new demand it can unlock.”
The company has already made the “first builds” of the lower-cost Model Y but has yet to begin deliveries. It earlier stated that sales would start in the fourth quarter, though at a slower pace than initially planned.
Record Deliveries and Looming Slowdown
Tesla recently reported record third-quarter deliveries, fueled by a last-minute surge in U.S. EV purchases before the $7,500 federal tax credit expired on September 30. Analysts, however, expect sales to cool in the coming months without that incentive.
Despite the short-term uncertainty, Wall Street remains bullish. Visible Alpha projects Tesla’s deliveries will jump to 1.85 million vehicles next year, with the cheaper Model Y contributing more than 155,000 units by 2026.
Product Pipeline and Market Context
Tesla has not launched a new mass-market vehicle in several years, relying mainly on iterative upgrades to the Model 3 and Model Y. Its most recent major release, the Cybertruck, has faced production challenges and soft demand — with Tesla offering deep discounts to clear inventory.
According to U.S. recall filings, the company built 46,096 Cybertrucks between November 2023 and early 2024.
As expectations build for Tuesday’s event, analysts see the potential unveiling of a budget-friendly Model Y as a pivotal moment for Tesla — one that could reshape its sales trajectory and reinvigorate investor confidence in Elon Musk’s push to make electric mobility truly mainstream.