The “budget-friendly” Tesla is actually the Model Y. Here’s what that truly signifies.

Tesla CEO Elon Musk shared during a recent Q2 earnings call that the anticipated “lower cost” vehicle from Tesla is set to be a simplified version of the Model Y. New details about this upcoming model have started to emerge. Tesla enthusiast Luca Presti (via Teslarati) recently highlighted a video that outlines some of the expected modifications to the more “affordable” Model Y.

Presti’s overview indicates a range of differences compared to the current Model Y. The primary adjustments involve using less expensive materials and removing certain luxurious features to lower manufacturing costs.

Significant changes to the exterior include the absence of a glass roof, replaced instead by a solid panel in the same color as the car’s body. Additionally, the vehicle will not have light bars on the front or back, and the reflective part of the tailgate has been eliminated. Although there were rumors of a shorter wheelbase, making the interior less spacious, the video Presti shared suggests it remains similar in size to the current Model Y.

Inside, modifications include the removal of the rear display, with seats partially covered in textile material (instead of vegan leather), and a reduction in the number of speakers. The center console has been simplified to two sections, and even the coat hooks have been omitted. NotaTeslaApp has compiled a list of changes that outlines several easily removable features, such as heated and ventilated seats and power reclining rear seats.

Tesla has previously introduced a similar approach with the Mexican version of the Model 3, which also incorporates textile seats and does not feature a rear infotainment screen. It is yet to be determined whether the new, lower-cost Model Y will be widely available. The question of whether this simplified Model Y will appeal to buyers largely hinges on its pricing. Tesla’s standard models typically come with premium features not commonly found in entry-level vehicles, which means they can still offer competitive options even after adjustments. However, if the leaks are accurate, this new version may indeed be quite stripped-down, and the absence of certain features might be a consideration for potential buyers.