Tesla was seen racing a compact, short, and stocky Model Y around the test track at Fremont Factory, potentially hinting at an upcoming affordable model.
The smaller Model Y was observed with both front and rear end covers while being trailed by a Cybertruck, leading to speculation about its design and purpose.
This compact version of the Model Y could possibly be an affordable model rather than a performance variant, as it appears smaller than the traditional Model Y.
Tesla is expected to release more affordable models resembling the Model Y and Model 3 in the first half of 2025, aligning with its strategy to maximize factory utilization.