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Spy Shots Surface of Tesla’s Budget Model Y – Here Are 3 Features You Could Miss Out On

  • Tesla began producing a budget version of its Model Y with fewer features in the first half of 2025 at its Shanghai factory.
  • This budget Model Y follows the cancellation of Tesla's earlier affordable vehicle project, sometimes called the Model 2, whose end was first reported by Reuters and later confirmed.
  • The stripped-down Model Y removes features like the rear display, glass roof, and coat hooks, replaces vegan leather seats with textile, and reduces the number of speakers.
  • In early July, insurance registrations for Tesla vehicles in China jumped by 145%, indicating sales of 12,300 units that week compared to 5,010 the previous week. Additionally, Tesla wholesaled more than 71,000 cars in China during June, despite a 12% drop in its global revenue in the second quarter.
  • The budget Model Y aims to remain competitive amid rising domestic EV competition, but its fewer features and Tesla’s declining market share raise questions about future consumer appeal.
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techeblog.com broke the news in on Sunday, July 27, 2025.
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