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Budget Tesla Model Y prototype spotted in California

© A. Krivonosov
A budget Tesla Model Y prototype was spotted in California with Model 3–style headlights and a likely LFP battery. Expect lower pricing and a shorter range.
Michael Powers, Editor

A new Tesla Model Y prototype has been spotted on California roads, and eyewitness accounts point to it being the most affordable version of the popular electric crossover. Members of the Tesla Owners Silicon Valley club captured the car on camera, prompting immediate debate over how Tesla intends to position it.

At first glance, the newcomer looks almost identical to regular Model Y variants, but one detail stands out: instead of the LED light bar from the Juniper update, this car carries Model 3–style headlights. Social media users said the change looks more cohesive and gives the model a fresher face. It suits the car’s lines, too.

Updated Tesla Model Y
© Video screenshot

Official specifications have not been released, but experts suggest the “budget” Model Y will use a lower-capacity LFP battery to cut costs. Its range would trail higher trims yet remain suitable for everyday driving. It’s also possible Tesla will scale back some driver-assistance and comfort features to keep the price in check.

Bringing a budget version to market looks like a logical step: competition from Chinese brands is intensifying, and their EVs can be 30–50% cheaper. For Tesla, a simplified Model Y would help defend its segment lead and give buyers a clear choice between maximum range and a lower sticker. In today’s market, that feels like a pragmatic trade-off.