TLDR
- Tesla posted teaser videos on Sunday showing vehicle headlights and a spinning wheel, ending with the date “10/7”
- Shares rose 2% in premarket trading as investors anticipate an announcement about a more affordable vehicle model
- The company previously delayed its lower-cost Model Y variant, which is designed to be 20% cheaper to produce
- Tesla delivered record quarterly numbers for Q3 2025, driven by purchases before the $7,500 federal EV tax credit expired on September 30
- Wall Street projects Tesla deliveries will reach 1.85 million vehicles in 2026, with the cheaper model accounting for 155,610 units
Tesla shares climbed in early trading Monday after the electric vehicle maker teased an upcoming event. The company posted two videos on X that hinted at something coming Tuesday.
Tesla just released this teaser video for something launching on Tuesday, October 7th
What do you guys think it is? 😎pic.twitter.com/pItHbQT3Zo
— Nic Cruz Patane (@niccruzpatane) October 5, 2025
One video showed illuminated headlights in a dark setting. The other displayed a spinning wheel and ended with “10/7.”
Tesla stock was up 1.9% to $438.06 ahead of Monday’s open. The shares had fallen 1.4% on Friday.
The timing comes as investors have been waiting for a more affordable Tesla model. The need for a lower-cost option became more pressing after federal EV tax credits were eliminated earlier this year.
Tesla had previously said it would launch a stripped-down version of the Model Y. The company announced in June that it had completed “first builds” of the vehicle.
However, Tesla pushed the sales launch to the fourth quarter. The company also said it would ramp up production slower than originally planned.
The new version is engineered to cost roughly 20% less to produce than the refreshed Model Y. Sources told Reuters the vehicle could scale to about 250,000 units annually in the U.S. by 2026.
The company just wrapped up record quarterly deliveries for the three months ended September. The surge came as buyers rushed to purchase EVs before the $7,500 federal tax credit expired on September 30.
That incentive is now gone. Analysts expect Tesla sales to decline in the coming months without the tax benefit.
Pressure Mounts on Aging Lineup
Tesla faces challenges from a model lineup that hasn’t seen fresh blood in years. The company has relied on incremental updates to the Model 3 and Model Y to maintain sales.
No new mass-market vehicle has been introduced recently. This strategy has left Tesla vulnerable as competition in the EV space heats up.
The Cybertruck, Tesla’s last major launch, has struggled to gain traction. The company has offered discounts of thousands of dollars on inventory vehicles in recent months.
A U.S. recall filing from March revealed 46,096 Cybertrucks had been built between November 2023 and early this year. That production number fell short of expectations.
What Wall Street Expects
Analysts project Tesla will deliver 1.85 million vehicles next year. The affordable Model Y variant is expected to account for 155,610 of those units in 2026, according to Visible Alpha estimates.
Coming into Monday trading, Tesla stock was up 6% so far in 2025. The shares have traded in a range as investors weighed production challenges against delivery growth.
The company did not immediately respond to requests for comment about Tuesday’s event. The teaser videos offered no details about what Tesla plans to reveal.
Tesla’s October 7 event could provide clarity on the affordable model’s timeline and pricing.
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