Spy photos reveal that Tesla's new, cheaper Model Y goes back to basics

Leaked images, first published by the popular Chinese auto blog "Garage 42," reveal what looks like a more affordable version of the Tesla Model Y. It seems this long-awaited vehicle is simply a stripped-down version of Tesla's best-selling electric SUV.

Looking at the interior spy shots, Tesla is making some big cuts. The giant, single-pane panoramic glass roof, a signature feature of the current Model Y, is gone. This change alone will cut material and manufacturing costs.

In the back, passengers will have to entertain themselves the old-fashioned way, as the rear screen has also been removed. The front center armrest area has been redesigned into a pass-through space, which could make the front cabin feel more open. Some things have been improved - the vehicle in the photos has traditional steering column stalks, a feature Tesla has removed in its newer models.

The cost-cutting continues on the outside. The most obvious change is at the front, where the sleek, continuous light strip has been removed. The headlights appear to have been moved higher up the fascia, and around back, the taillight design is also expected to be simplified, likely losing the central reflective strip that connects the two lights. These are calculated decisions to make the car easier and cheaper to build.

While the Tesla Model Y has been a sales champion in China, its throne is looking a bit wobbly. In the first half of 2025, Tesla sold 171,491 units of the Model Y in the premium segment, which includes vehicles priced above RMB 250,000 (about $34,750). That's impressive, but competitors are catching up fast.

In the same period, the stylish Xiaomi SU7 sold 155,692 units, breathing down the Model Y's neck. Xiaomi just launched its new YU7 model and has already taken 200,000 orders. The competition for electric cars is fierce, with brands like XPeng, Li Auto, and Nio's Onvo all planning to release strong contenders later this year.

Tesla Model Y used to offer a compelling package of performance, technology, and access to the Supercharger network. But as other companies have improved their own EVs, the Model Y's value proposition isn't what it once was. This is why a more affordable version is not just a good idea, but a necessary one for Tesla to maintain its market share. CEO Elon Musk confirmed as much during a recent earnings call, stating that the company's next affordable offering would be based on the Model Y platform rather than being a completely new design from the ground up.

According to Chinese automotive media, this simplified Model Y is already in production. It is expected to officially hit the market in the fourth quarter of 2025. The new variant will offer the core Tesla experience - the instant acceleration, the minimalist software, and the industry-leading charging infrastructure - at a more accessible price point. The big question will be whether customers are willing to trade luxury features for a lower sticker price. Tesla is betting they will.

Source (Chinese)