The high-selling Model Y is crucial for both Elon Musk and Tesla, but a half-hearted reskin of the car hasn’t reversed the company’s sales woes. Would a complete overhaul have been a better bet?

Tesla started "initial production" of a long-awaited cheaper model widely seen as the cure to its sagging sales, the company said in its second-quarter earnings release on Wednesday. Tesla completed the "first builds" of that model in June, and said it expects to kick off mass production of the new car in the back half of 2025.

Tesla has been promising more affordable models as the thing that will help pull it out of its current rut. But in an earnings call Wednesday, the company’s CEO came right out and confirmed rumors that it would just be a stripped down version of the Model Y,

For a few years now, Tesla and its CEO, Elon Musk, have promised a low-cost model was in the works, but wouldn’t detail how it would look and just how inexpensive it might be. On Tesla's second-quarter 2025 earnings call, Musk let the cat out of the bag and finally confirmed the cheap Tesla is finally coming—and exactly what it will look like.

Tesla blamed the disappointing results on a combination of factors including a decline in vehicle deliveries as well as lower revenues from regulatory credits. On top of that, the average vehicle selling price has dropped and there is increased competition.

Tesla Chief Executive Elon Musk said on Wednesday that U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year.

Tesla has revealed a stretched, six-seat variation of its popular Model Y mid-size electric SUV —but there’s a big catch.

Tesla is poised to launch the long-wheelbase variant of the Model Y in the US later this year, finally nailing the coffin for the obsolete Model X

Tesla Model Y was launched in the Indian market a few days ago. Same day, the official website of the automaker for India went live. At the time, the consumers only had the option of choosing Mumbai,

Recent hailstorms in Colorado have caused widespread damage to Tesla vehicles, reigniting concerns about the vulnerability of their glass roof structures. A Model Y owner, Printee, gained attention on TikTok after posting a video showing her desperate attempt to shield her new car from the hail by covering it with a blanket.

Tesla TSLA after the stock market closed reported second-quarter earnings falling 23% with sales also dropping. The conference call is due at 5:30 p.m. ET where all the focus will be on CEO Elon Musk's comments, especially regarding the robotaxis. TSLA shares angled lower after the earnings report.