Tesla prepares to launch a new electric model on October 7

Tesla has announced an event scheduled for October 7, hinting at the arrival of a more affordable vehicle amid a limited product refresh and growing competition in the electric vehicle segment.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Tesla released a short nine-second video on social platform X, showing a car with headlights turning on in the dark. The clip ends with the date “10/7”, strongly indicating the company will hold an event on October 7. This visual teaser was enough to lift the stock by 2% in pre-market trading, as analysts anticipate the unveiling of a lower-cost model.

A streamlined model to expand the customer base

The California-based automaker has been preparing a more affordable version of the Model Y, whose launch had previously been delayed in the United States. In June, Tesla confirmed it had begun initial production of the vehicle, with sales expected to start in the fourth quarter. However, the initial output is expected to be limited, with a slower ramp-up than originally planned.

This model is designed to be about 20% cheaper to manufacture than the current version of the Model Y, according to sources familiar with the matter. It could reach an annual capacity of 250,000 units in the U.S. by 2026. The approach aims to bolster competitiveness as pricing pressure grows across the electric vehicle market.

Strong deliveries ahead of tax credit expiration

Tesla posted record deliveries in the third quarter, supported by a surge in purchases ahead of the expiration of the $7,500 federal electric vehicle tax credit on September 30. Analysts, however, expect demand to soften in the coming months without this fiscal incentive.

According to estimates from Visible Alpha, Tesla’s deliveries could reach 1.85 million vehicles in 2026, with about 155,610 units coming from the upcoming budget model. The projection highlights the industrial significance of the vehicle’s launch in the company’s broader growth trajectory.

An ageing lineup and uneven performance

Tesla’s strategy continues to rely heavily on technical updates to existing models. No new high-volume vehicle has been introduced for several years, despite intensifying global competition. The Cybertruck, the company’s most recent product launch, has faced commercial difficulties since its release.

Between November 2023 and early this year, 46,096 Cybertrucks were produced, according to a U.S. regulatory filing from March. Tesla has also applied multiple discounts to clear inventory. These circumstances underline the strategic importance of the October 7 event for the future of Tesla’s product portfolio.

The European Investment Bank unlocks an unprecedented $250mn loan to support the construction of Costa Rica’s first electric rail system, in partnership with two regional financial institutions.
Ferrari unveiled the chassis of its first electric vehicle, the Elettrica, while announcing a revision of its electrification targets, favouring thermal and hybrid powertrains for the coming decade.
The main European automotive lobby is calling for looser 2030 and 2035 emission targets, promoting hybrids and carbon-neutral fuels.
Dubai's electricity authority strengthens its electric vehicle charging network through three major contracts with ENOC, Dubai Taxi and Parkin under its EV Green Charger programme.
TotalEnergies and Banque des Territoires create a joint venture to accelerate the rollout of public electric charging infrastructure in French municipalities, with a focus on urban and suburban areas.
Dacia presents an ultra-compact electric prototype priced under €15,000, betting on extreme simplification to compete with low-cost Chinese electric vehicles.
Berlin questions the ban on sales of combustion cars from 2035, as German automakers warn of economic and industrial risks for the country.
Stellantis CEO Antonio Filosa calls for adjustments to the 2035 deadline to safeguard industrial activity and accelerate decarbonisation through flexibility mechanisms.
Faced with falling margins and overcapacity, Beijing is restructuring its electric vehicle industry by focusing on quality, standards, and technological upgrading.
An American-built electric aircraft completed a test flight between Stavanger and Bergen, marking a key step in integrating zero-emission air cargo operations into Norwegian airspace.
The visit marks a new step in the cooperation between the United Arab Emirates and Tellus Power, aiming to establish an EV charging station production unit in the Gulf.
Toyota launches production of its first electric vehicle in Europe at its Kolin plant in the Czech Republic, supported by a €680mn investment, including €64mn in public funding.
The Canadian government invests CAD22.7mn ($16.7mn) in eight projects to strengthen the electric vehicle charging network in British Columbia.
Ireland presents an SAF roadmap structured around four pillars, projecting 88,000 tons in 2030 and 318,000 tons in 2035, aligned with ReFuelEU and European support, while Aer Lingus and Ryanair set usage targets.
Electric vehicle charging infrastructure investments are expected to hit $300 billion by 2040, driven by a 12.3% annual increase in global charging port deployments.
The Japanese group TDK’s venture capital fund supports Ultraviolette, an Indian electric motorcycle manufacturer, to help it scale up in a domestic market estimated at over $50 billion within ten years.
U Power announces the signing of a letter of intent to supply 300 battery-swapping compatible electric vehicles in partnership with a Hong Kong-based technology manufacturer, marking a major milestone for intelligent commercial mobility.
According to Ember, only 3% of India’s wind and solar targets for 2032 would be sufficient to cover the entire electric vehicle charging demand, provided appropriate measures are taken for grid management and charging infrastructure.
TotalEnergies holds 23% of the high-power charging market on French motorways, according to data published by Gireve, with more than 1,800 active points across 265 service stations.
The British government is mobilising USD845mn to subsidise electric-car purchases, easing pressure on an industry hit by US tariffs and preparing for the 2030 ban on internal-combustion engines.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.