Tesla is expected to unveil a more affordable version of its best-selling Model Y SUV on Tuesday, a move aimed at boosting its flagging sales and fighting off a wave of new global competition. For years, CEO Elon Musk has promised to deliver a true mass-market electric car, and this new, more affordable Model Y could be the first significant step in that direction.
The company fueled the speculation over the weekend with a pair of mysterious videos posted on social media. One showed a car’s headlights in the dark, and another featured a spinning wheel followed by the date “10/7.” While there’s no official in-person event planned, the hype is building for a major announcement.
The key questions concern the car’s price and driving range. Late last year, Musk said the new vehicle would be priced below the “key threshold” of $30,000, but that was including a major U.S. tax credit that has since expired. With that incentive gone, the price of a Tesla effectively jumped by $7,500 overnight, making a more affordable model even more critical for the company.
“The desire to buy the car is very high,” Musk said recently. “It’s just that people don’t have enough money in the bank account to buy it.”
Tesla has been facing declining sales of its aging lineup as competition has intensified, particularly in China and Europe. A new, more affordable car is exactly what the company needs to get back on track and reach its ambitious goal of delivering 20 million vehicles over the next decade.
