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.