Elon Musk's Tesla hints at budget EV launch on October 7

Elon Musk ’s Tesla has once again started the buzz across the automative industry with a cryptic teaser for an event which is scheduled to take place on October 7. As reported by Reuters, the company has posted a nine-second video on social media platform X (formerly known as Twitter). In the video shared Tesla has revealed a shadowy silhouette of a vehicle with illuminated headlights along with a message ‘See you Tuesday’. The teaser ends with the date 10/7. The teaser shared has fueled speculation that Tesla may be finally unveil its much-awaited affordable electric vehicle .

A push towards budget-friendly EVs
According to a Reuters report, the teaser comes at time when Tesla is under immense pressure to expand its lineup beyond the premium models. The report adds that the company is working on a stripped-down version of the Model Y which is designed to be roughly 20% cheaper to produce as compared to the refreshed version. Tesla has also confirmed earlier that it has completed “first builds” of the vehicle and plans to begin sales in the fourth quarter of 2025, with production ramping up gradually.

Thins upcoming Tesla model is said to be a game changer with projections suggesting it could scale to 250,000 units annually in the US by 2026, helping Tesla tap into the mass-market segment and compete with lower-cost EVs from rivals.

Tax credit expiration adds urgency
The report also suggests that the teaser also follows the expiration of $7,500 U.S. EV tax credit on September 30, a shift that may significantly impact consumer behaviour. Tesla also reported record quarterly delivers for the three months ending in September. Analysts feel thwart the loss of this incentive could prompt Tesla to rethink its pricing strategy and also accelerate the launch of more affordable models.