Smaller and lower cost Tesla EV spotted testing ahead of imminent launch

In April, reports from China via social media suggested that the much-anticipated cheaper Tesla model was less than three months away, with an expected launch in July.

Now, a prototype of a smaller electric SUV is spotted at Tesla’s Fremont factory being tested ahead of the imminent launch.

In a video captured by a California-based YouTuber, Met God in Wilderness and shared by Teslanewswire on X, a white Tesla SUV is spotted with its front and rear covered.

This car is seen driving around the track, and at one stage in the video, is seen reversing and driving in the opposite direction to cars parked alongside the track.

It appears to be shorter in length than the standard Tesla Model Y, which is about 4.8 meters long.

This prototype is between 4.4 and 4.6 metres in length, based on what can be seen in the video when compared to other Model Ys being tested.

In recent years, Tesla has increased its sales with the launch of the more “affordable” Model 3 sedan and Model Y SUV, as these models were cheaper than the traditional Model S and Model X vehicles, which are more premium.

Today, Tesla’s Model Y starts at $58,900 and with many more affordable options on the market on the way, this could be the car that brings the next phase of growth for Australia’s leading EV brand.

A cheaper model has been in the works for a while, with multiple mentions of this model at the company earnings calls and presentations.

One recent update said: “Preparations remain underway for our offering of new vehicles – including more affordable models – which we will begin launching in the first half of 2025.”

Although not much is known about the specs of this affordable model, Tesla may cut costs by using cloth seats, cheaper battery packs, an efficient supply chain and a more streamlined manufacturing method that is in line with the Model 3 and Model Y production lines. 

At Q3 earnings call back in October 2024, Tesla’s presentation deck said: “These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be produced on the same manufacturing lines as our current vehicle line-up”.

This should boost the productivity of those production lines, which are already some of the best in the world in terms of output. 

With previous reports from China hinting at a possible July launch, the more affordable Model Y will likely see tens of thousands of orders by the end of the year and should keep the momentum going, which has been built off the back of the launch of the new Model Y which began deliveries in May locally.

Video of Tesla’s Fremont factory track on YouTube