Competing with China's dominance, Elon Musk plans to introduce a less expensive and slimmer version of Tesla, catering to a broader market of budget-conscious consumers.

Tesla Unveils Plans for Affordable Electric Car

Elon Musk, the visionary CEO of Tesla, is working tirelessly to make Tesla a top player in the electric car sector once again. In a recent development, Musk has announced plans for an affordable electric car, a more economical version of the Tesla Model Y, which is expected to hit dealerships in 2026.

The first test mule of this affordable Tesla has been spotted, resembling a Model Y but with several significant changes. The rear light, a distinctive feature of the Model Y, is estimated to lose its impact in the affordable Tesla. The panoramic sunroof and the central screen between the front seats, common features in Tesla cars, seem to be absent in the affordable model.

The LED that runs across the width of the vehicle, a characteristic feature of the Model Y, has been discarded on the outside of the affordable Tesla. The entire center tunnel appears to have undergone a redesign in the affordable Tesla.

Elon Musk revealed this change in strategy during a recent announcement, stating that the proposed affordable electric car, either the Tesla Model 2 or the Tesla Model Q, has the responsibility of electrifying the masses. The proposed starting price for the affordable electric car remains at $25,000.

Tesla's financial performance in the second quarter of 2025 has seen a dip, with a net profit decrease of 16% and a significant drop in revenue. This decline is partly due to a reputation crisis that Tesla has been experiencing since Elon Musk's involvement in Donald Trump's administration.

Despite these challenges, Tesla is pushing forward with the launch of the cheap Tesla model. The company is expected to handle the introduction of the affordable electric car, although specific details about who exactly will oversee the release have not been disclosed. The Tesla Roadster 2026 and the Model Y Performance are scheduled for production and delivery starting around 2025-2026, with Tesla handling their introduction.

As China continues to thrive with its electric vehicles, the affordable Tesla is expected to play a crucial role in Tesla's recovery and its mission to make electric cars accessible to the masses. The official presentation of the affordable Tesla is scheduled for a few months from now.

In addition to these changes, Tesla has announced that all its cars will come with an extra feature from now on, although details about this new feature have not been disclosed. Stay tuned for more updates on Tesla's affordable electric car.