This May Be It Under Wraps

• Tesla’s affordable model was seemingly spotted in a parking lot.
• The car was camouflaged, but a few key points show where Tesla is making its cuts in cost.
• Say hello to cloth seats, less interior storage, and fewer premium options.

Someone finally managed to catch what appears to be Tesla’s “affordable” new model in a parking lot in China.  And not just one, but several of these cars were sitting unsupervised, draped with some coverings to hide the changes. 

Unsurprisingly, they look a lot like the existing facelifted Model Y—just one that someone convinced to cut out carbs in preparation for Tesla’s rough quarters ahead.

The heavily camouflaged prototypes were captured and dissected in a video on Weibo, the popular Chinese social media platform. You can watch the video here.

It’s not some advanced hatchback to slot in under the Model 3, or some city pod modeled after the Robotaxi. It’s…well, it’s just another Model Y (which is in line with what Elon Musk let slip during the automaker’s earnings call last week).

However, there are some key differences under wraps that point to this car not being the unreleased Performance or Long Wheelbase specs, but instead a cheapened version of the company’s best-selling crossover. Let’s dig in.

Tesla Model Y Affordable Inline Teaser

Photo by: Tesla

It appears that the Model Y’s new Cybertruck-inspired front LED strip has been removed from the car. Instead, the car now features what might be projector-style lights moved in its place. This means that the matrix-style headlights located lower on the bumper could now be gone. Tesla, a huge fan of modularity, may have also used the Highland Model 3-style headlights in the Model Y, but that’s not immediately clear from the video. The textured rear trim between the taillights on the updated Model Y is also missing—instead, just the painted body sits in its place.

As for the interior, the front and rear seats appear to have moved from Tesla’s vegan leather to fabric. An expected move, especially since Tesla also took this route with its cheaper Model 3 meant for Mexico in 2024. This might actually be a welcome change for owners, given Tesla’s notorious issue with headrests bubbling over time.

The car also appears to have moved to a new, shorter center console design similar to the Cybertruck. This cuts out the center sliding storage area completely in favor of open space. And, hey, less material means cheaper, right? Speaking of less material, the Model Y’s rear screen has also been removed.

Tesla Model Y Affordable Interior

Photo by: Weibo

Door panels are also covered, meaning that Tesla may have some additional changes hidden under there. This could be the removal of its LED strips, or perhaps a redesign that makes parts even cheaper to manufacture by cutting out features like door pockets—that’s just speculation until we see what Tesla shows off officially, though.

Notably, the car is still using Hardware 4, which is to be expected given that Tesla doesn’t plan to release its next-generation hardware, dubbed AI5, until late next 2026. At least it kept the front bumper camera, though!

The individual filming the car speculates it could cost around $28,000 USD (200,000 RMB), which would land it right in that under-$30,000 sweet spot that Tesla wants to attract more customers. And, let’s be honest, Tesla needs that now more than ever if it wants to remain profitable when both the EV tax credit and income from the same of regulatory credits go away in the near future.

Could it spell out a winner for Tesla? Possibly—but remember that there’s probably more cost-cutting that we aren’t seeing. The batter, for example, is almost certainly either smaller or software-limited (a move which Tesla has pulled a number of times before).

We’ll find out more in the coming months as Tesla readies it for release.