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Reading: Tesla Unveils Affordable Model Y in 2025 to Combat Falling Sales
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Tesla affordable Model Y 2025
PhotoNews Pakistan > Tech > Tesla Unveils Affordable Model Y in 2025 to Combat Falling Sales
Tech

Tesla Unveils Affordable Model Y in 2025 to Combat Falling Sales

Web Desk
By Web Desk Published October 7, 2025 2 Min Read
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Elon Musk and Tela's emblem. Photo Credit: Yahoo Tech
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Tesla plans to unveil an affordable version of its top-selling Model Y SUV on October 7, 2025. The electric vehicle giant aims to reverse declining sales and market share amid fierce global competition.

CEO Elon Musk has long promised mass-market cars, though he scrapped a $25,000 EV plan last year. This new model uses existing platforms to cut costs while delivering value.

The announcement follows teaser videos on X, which show headlights in the dark and a spinning wheel with the text “10/7.” Fans and analysts expect details on price, range, and features. No in-person event is planned, unlike past launches.

Tesla’s sales slowed in 2025, hit by an ageing lineup and rivals in China and Europe. Musk’s political views have also dented brand loyalty. The refreshed Model Y, introduced earlier this year, added light bars and a rear touchscreen, but more is needed. The affordable model could stem the tide, especially after US EV tax credits ended, raising effective prices by $7,500.

Read: Panasonic Announces Anode-Free Battery for Tesla EVs by 2027

Musk told analysts in July, “People want the car but lack funds. Making it more affordable is key.” He initially targeted June production but delayed it to Q4 2025. A stripped-down Model 3 is also in the works.

The vehicle is expected to cost under $30,000 after tax credits, according to Musk. Key questions include its driving range, cost-cutting measures, and availability. This supports Tesla’s goal of producing 20 million vehicles annually by 2035—a milestone linked to Musk’s $1 compensation package.

This launch tests Tesla’s mass-market ambitions. Success could reclaim dominance, while delays risk further loss of share. As EV competition heats up, affordability drives growth.

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