Tesla's Lower-Cost Model Y Spotted in China Amid Cost-Cutting Measures

A camouflaged version of what appears to be Tesla's more affordable Model Y was recently spotted in a parking lot in China. Multiple vehicles, covered to conceal design changes, were seen and filmed, with footage shared on Chinese social media platform Weibo.

The vehicles closely resemble the current facelifted Model Y, but several modifications suggest cost-cutting measures. Notable changes include the removal of the Cybertruck-inspired front LED strip, possible replacement of matrix-style headlights with projector-style lights, and the absence of the textured rear trim between the taillights. Inside, the seats have reportedly shifted from vegan leather to fabric, and the center console has been redesigned to a shorter version similar to the Cybertruck, eliminating the center sliding storage area. The rear screen has also been removed, and door panels were covered, possibly hiding further simplified features.

The vehicle continues to use Tesla's Hardware 4, as the next-generation AI5 hardware is not expected until late 2026. According to speculation from the individual who filmed the cars, the new model could be priced around $28,000 USD (200,000 RMB), potentially making it one of Tesla's most accessible offerings. More details about the model are expected as Tesla prepares for its official release.