Tesla’s long-promised affordable electric vehicle appears to be edging closer to reality, despite some changes to its timeline and design. Recent sightings of a test model in the US have given us a clearer picture of what to expect from the car, which is now expected to enter production later this year.
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Timeline Pushed Back to Late 2025
Earlier reports from China suggested that Tesla’s budget-friendly EV would enter production by July 2025. However, during the company’s recent earnings call, Tesla revealed that the new model’s release would be delayed to the fourth quarter of 2025.
This delay comes as Tesla focuses on increasing deliveries of the Model Y before the US federal tax credit begins to phase out.
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A recent video posted on social platform X by user Drivegreenlivegreen shows a test vehicle in the US. While parts of the car are still camouflaged, the footage provides a few interesting insights:
| Feature | Details Observed |
| Roof | Solid metal roof replaces the standard panoramic glass |
| Seats | Cloth seats without ventilation |
| Lighting | No light bars from the updated Model Y |
| Estimated Length | Between 4.4m and 4.6m (shorter than Model Y) |
The test vehicle appears more compact than the current Model Y, which measures about 4.8 metres in length. The car spotted could be aimed at city drivers or those looking for a smaller, more affordable EV without the luxury features of Tesla’s existing models.
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Simpler Interior and Exterior
The model is likely to take a more minimal approach to materials and design. In addition to the solid roof and fabric seats, the car misses out on premium touches like ventilated seating or exterior light bars. These changes are expected to help keep the price low and position the vehicle as Tesla’s entry-level offering.
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Tesla CEO Teases Model Y-Like Design
During the Q2 earnings call, Tesla CEO Elon Musk gave a light-hearted response when asked about the design of the new model. He quipped that it would resemble the Model Y. Though brief, this suggests that the upcoming vehicle may share styling elements with Tesla’s best-selling SUV, albeit in a more compact and cost-effective format.
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Current Model Y Pricing in Australia
Tesla’s Model Y currently starts at $58,900 AUD, making it one of the more premium compact electric SUVs available in Australia. A more affordable Tesla model could significantly impact the local EV market, where competition from Chinese and Korean brands is rapidly growing.
| Model | Starting Price (AUD) | Segment |
| Tesla Model Y | $58,900 | Compact SUV |
| Affordable Tesla | TBD (Expected < $50,000) | Small SUV/Hatch |
Why This Matters for Australia
With growing demand for lower-cost EVs, especially in urban areas, Tesla’s upcoming model could play a critical role in maintaining the brand’s foothold in the Australian market. A locally available sub-$50,000 Tesla would be highly competitive, particularly if it offers reasonable range, features, and performance.
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Final Thoughts
Tesla’s affordable EV may not be far off, even if it has taken longer than initially expected. The test car sightings and product strategy point to a simpler, smaller, and more accessible electric car designed to attract a broader audience.
While exact specs, range, and pricing are still under wraps, all signs suggest that Tesla is preparing to enter a new chapter one that could change the dynamics of EV adoption not just in the US, but also in Australia.
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