Tesla teases Tuesday event as Americans await lower prices

Tesla recently shared a cryptic teaser for an event scheduled for Tuesday, October 7, 2025, as the world anticipates its more budget-friendly electric vehicles (EVs) to protect its US market from rising costs. 

The company raised lease prices for all its vehicles in the U.S. following the expiration of the $7,500 federal tax credit, with the Model Y lease now ranging from $529 to $599.

Tesla teases Tuesday event 

On October 5, Tesla’s X account shared a short video that hinted at an event scheduled for October 7. Later in the day, it posted another short clip that showed glowing headlights illuminating a dark setting. 

Both videos sparked speculation that the event could unveil or provide updates on Tesla’s anticipated affordable models. Many in the comments section have even started asking Grok to imagine what the car would look like.  

These teasers dropped amid heightened anticipation. Investors and analysts have long awaited a more affordable model that will sustain sales momentum.

If an affordable product is about to be released, it will most likely be the lower-cost version of the Model Y, which Tesla previously delayed launching in the United States. In June, the company stated that it had created “first builds” of the vehicle, but would not start selling it until the fourth quarter, and output is expected to be slower than planned.

The stripped-down version has reportedly been designed to be roughly 20% cheaper to produce than the refreshed Model Y and could scale to about 250,000 units a year in the U.S. by 2026, some sources said earlier this year.

The news comes after Tesla’s Q3 deliveries for 2025 revealed growth influenced by U.S. buyers who rushed to snap up available EVs before the $7,500 federal EV tax credit expired on September 30. 

Judging by current public sentiment, Tesla can not afford to keep delaying the release of affordable EV options, as that could slow demand in a market already cooling down after years of rapid EV growth. Affordable releases could change this, and users may finally be getting one. 

The expiration of the federal EV tax credit is affecting Musk’s EV maker  

The expiration of the $7,500 federal EV tax credit has significantly affected Tesla’s market in the U.S., effectively raising the cost of its vehicles for consumers.

Since the expiration, Tesla’s entry-level models have surged in price, which has also affected leases, making them pricier. 

Tesla had been passing the credits on to customers via competitive lease offers, but no longer. Now, the monthly lease of the electric vehicle manufacturer’s best-selling Model Y has surged to a range between $529 and $599, while its Model 3 lease prices rose to a range of $429 to $759 per month.

Some analysts say the expiration may trigger a shift that could shape consumer choices and prompt Tesla to recalibrate its pricing strategy, as sales can continue to drop now that the credits have dried up. 

The EV carmaker is also struggling to keep its customers from being poached by rivals who propose competitive offers and alluring functions. Its U.S. market share fell to a near eight-year low in August, as buyers patronized its rivals instead. Tesla, which once dominated the EV market in the United States, accounted for only 38% of the country’s total EV sales.

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