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Tesla Races Strange, Compact Model Y on Fremont Test Track: Affordable Model?

  • A camouflaged Tesla Model Y prototype was spotted racing on a test track next to the Fremont factory in California in early June 2025.
  • This event follows Tesla CEO Elon Musk canceling two cheaper vehicle projects to focus on producing new affordable models based on the existing Model 3/Y platform.
  • The prototype is about 20 centimeters shorter than the current Model Y, features front and rear camouflage, and is believed to represent Tesla’s upcoming lower-cost version.
  • Tesla CFO Vaibhav Taneja confirmed production of this more affordable Model Y is planned for June 2025 and noted that switching production lines caused several weeks of lost output.
  • This development indicates Tesla aims to increase factory utilization and address economic uncertainty by launching a stripped-down Model Y in the first half of 2025.
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A camouflaged prototype has been spotted during testing at Tesla's Fremont, California, factory, sparking speculation that this could be a cheaper version of the current Model Y.

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Next Big Future broke the news in United States on Thursday, May 29, 2025.
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