Tesla on Sunday teased an upcoming event scheduled for October 7, fueling speculation that the automaker may unveil a long-awaited affordable model aimed at revitalizing sales growth. Shares of the company rose about 2% in premarket trading following the announcement.
In a nine-second video posted on social media platform X, the company showed a car with illuminated headlights against a dark background, accompanied by the date “10/7.” The brief clip offered few details but heightened expectations among investors and analysts, many of whom are anticipating the debut of a lower-cost version of the Model Y or a new entry-level vehicle.
See also: Tesla Q3 Deliveries Hit Record 497,099 Units, Driven by U.S. Demand Ahead of Tax Credit Expiration
Tesla has previously delayed launching a more affordable Model Y in the United States. The company said in June that it had completed “first builds” of the model, with sales expected to begin in the fourth quarter and production to increase gradually.
Sources told Reuters earlier this year that the new version is designed to be roughly 20% cheaper to produce than the refreshed Model Y and could scale up to about 250,000 units annually in the U.S. by 2026.
See also: Tesla Adds Vehicle-to-Load Feature to New Model Y Performance, Expanding Beyond Cybertruck
The teaser follows Tesla’s record quarterly deliveries for the three months ending in September, supported by a surge in purchases ahead of the expiration of the $7,500 federal electric vehicle tax credit on September 30. Analysts, however, expect sales to ease in the coming months as the incentive ends. Wall Street forecasts Tesla’s deliveries to rise to 1.85 million vehicles next year, with the cheaper model contributing an estimated 155,610 units in 2026, according to Visible Alpha data.
Tesla continues to face pressure from an aging vehicle lineup, having relied on incremental updates to the Model 3 and Model Y to sustain demand. The company’s most recent major launch, the Cybertruck, has encountered production and sales challenges. Tesla has offered discounts on vehicles in stock in recent months, and a U.S. recall filing in March indicated that 46,096 Cybertrucks had been built between its November 2023 debut and early this year.
Tesla Launches Updated Model Y Performance In U.S. Starting at $57,500
