Tesla to Unveil Budget-Friendly Model Y as Sales Decline and Competition Rises

Electric car manufacturer Tesla is getting ready to launch a new and cheaper version of its top-selling SUV, Model Y. The company is likely to release the new version in the near future. It is making this announcement at a time when Tesla is suffering from low sales and stiff competition. The new Model Y will be made using the current design and production base, but its price tag will come down substantially so that it becomes accessible to more consumers.

Tesla CEO Elon Musk has long talked about introducing affordable electric vehicles. However, last year he canceled plans to develop a new EV (electric vehicle) priced at $25,000 (approximately ₹2.2 million). The upcoming model is considered a step in that direction. Recently, Tesla posted two short videos on the social media platform X (formerly Twitter). One video shows the car's headlights in the dark, and the second shows a rotating wheel. The video ends with "10/7," suggesting something big is coming on October 7th.

According to experts, the price of the new Tesla Model Y could be less than $30,000 (approximately Rs. 2.5 lakh). The company previously stated that this price, including tax credits, would be within an "affordable range." Last month, the expiration of EV tax credits in the US led to a temporary increase in car prices by approximately $7,500 (Rs. 6.2 lakh). This led to a temporary boost in sales, but now it is hoped that the launch of the cheaper Model Y will revive demand.

Tesla currently faces stiff competition in China and Europe. Chinese companies like BYD are rapidly gaining market share. Meanwhile, cheaper, local brands are also rapidly growing in the European market. The company launched a refreshed version of the Model Y earlier this year, featuring updates like new light bars and a rear touchscreen, but it didn't significantly improve sales.

Elon Musk is currently working to transform Tesla from just a car company to an AI-based technology company. His interest now is in areas such as robotaxi and humanoid robots. Tesla aims to produce 20 million vehicles within a decade, a milestone connected to Musk's incentive package that puts the company's value at $1 trillion.

Tesla is also working on a plan to introduce a cheaper version of its Model 3 sedan. The company wants its future electric cars to be not only technologically advanced but also affordable for the average consumer. Tesla's new Model Y is part of the company's strategy to make electric vehicles more accessible and mass-market friendly. If this car truly comes at a lower price, it could prove to be a game-changer for Tesla.