Tesla’s Secret EV Spotted! Affordable Model Y Variant Coming June
A drone caught Tesla’s new £24,000 EV at its Fremont factory, set for production by June 2025. Will this budget-friendly model boost Tesla’s fortunes? Kindel Media : Pexels

A drone buzzing over Tesla's Fremont factory has sparked a frenzy among electric vehicle (EV) fans. The footage, shared widely on X, appears to show a sleek, compact prototype, possibly Tesla's long-awaited affordable EV, set to start production by 30 June 2025.

With a rumoured £24,000 ($31,917) price tag, this 'secret weapon' could shake up the EV market, but details are scarce, and Tesla's stock is a risky bet. Here's what we know about this game-changer and its impact.

Drone Sparks Wild Speculation

The drone sighting has electrified Tesla enthusiasts. The prototype, resembling a stripped-down Model Y, was spotted on a Fremont test track, fueling speculation it's the budget-friendly EV Tesla's been teasing.

Chief Financial Officer Vaibhav Taneja confirmed on a recent earnings call that production lines are gearing up for a June launch, despite 'turmoil in the industry' slowing the ramp-up.

'We're focused on bringing cheaper models to market soon,' Taneja said, hinting at a vehicle priced to lure budget-conscious buyers, unlike Tesla's current £43,600 ($57,982) average transaction price.

X posts suggest the vehicle might be a no-frills Model Y variant, with smaller batteries and fewer features like glass roofs. However, Tesla's Vice President of Vehicle Engineering, Lars Moravy, noted the new models will 'resemble the form and shape' of existing cars, ruling out radical redesigns.

This move could help Tesla hit 3 million annual deliveries without new factories, but the lack of specifics keeps investors guessing.

Affordable Price Targets New Buyers

Tesla's affordable EV aims to crack open the mass market. With EV sales stalling,Tesla delivered just 336,681 vehicles in Q1 2025, its worst since 2022, the company needs a hit.

A £24,000 ($31,917) price could attract buyers priced out of pricier models, especially as competitors like China's BYD, which sold 416,000 EVs in Q1, gain ground.

The BBC reports global EV demand is softening, with auto industry growth hampered by high interest rates and inflation. Yet, challenges loom. Tesla's Q1 revenue fell 9% year-over-year to £20.6 billion ($27.4 billion), and operating margins sank to 2.1%, reflecting price cuts and competition.

The affordable EV could boost volumes but risks cannibalising Model 3 and Y sales. Posts on X warn of the 'Osborne effect,' where early announcements hurt current sales, a concern Tesla's coy approach may be dodging.

Autonomy Adds High Stakes

Tesla's bigger gamble is tying its affordable EV to autonomous driving. CEO Elon Musk claims the Cybercab, a driverless version of this model, will launch by 2026, leveraging Tesla's Full Self-Driving (FSD) tech.

A 25 April 2025 regulatory change by the Trump administration, easing self-driving rules, has boosted optimism, with Tesla's stock up 4.7% on 3 May 2025. However, FSD faces technical and regulatory hurdles, and Musk's history of overpromising, self-driving was pledged in 2016, tempers expectations.

Analysts like those at Motley Fool urge caution, arguing Tesla's £680 billion ($850 billion) valuation and 130 price-to-earnings ratio hinge on unproven tech. 'Wait to see how well the vehicle sells,' advises analyst Chris Neiger, citing risks of sluggish sales and competition from BYD and Waymo.

Tesla Faces Make-or-Break Moment

Tesla's affordable EV, glimpsed by a sneaky drone, could be the spark to reignite its growth, or a costly misstep.

The £24,000 ($31,977) price tag promises to draw new buyers, but fierce competition, thin margins, and reliance on unready autonomous tech make this a high-stakes bet.

For global consumers, cheaper EVs are exciting, but price hikes from trade wars could offset gains. Investors and buyers alike should buckle up, this ride could get bumpy.