Is this what to expect from the cheaper 2026 Tesla Model Y? Leaked images show stripped-back version of mid-size SUV as the EV pioneer looks to better rival the BYD Sealion 7, Geely EX5 and Leapmotor C10

Leaked images of a stripped-down Model Y, which Tesla supremo Elon Musk said would be the brand’s more attainable new model, have appeared in China.

The Model Y looks exactly the same dimensionally as the current car, but has a few notable changes.

Tesla has pulled out the panoramic sunroof, rear entertainment screen, the light bar across the front, and likely the light bar across the rear too (although this isn’t seen in the images).

A stripped-down specification for the Americas already existed, with Mexican Model 3s once being available with cloth seats and the rear multimedia screen taken out. This variant was hardly revolutionary on the price front, wiping around the equivalent of $4000 off the price-tag.

The Chinese images show the Model Y maintaining the synthetic leather interior, pointing to continued production and equipment differences between the Chinese-built vehicles, which arrive in Australia, and the cars built in and for the Americas.

Chinese media is claimed inside sources said the new low-cost Model Y is already in production and will launch, at least domestically, before the end of 2025.

A six-seat Model Y with an extended wheelbase was also recently revealed by the Chinese Ministry of Industry and Information Technology (MIIT) as a Chinese-market special variant. 

It is 180mm longer, 45mm taller, with an additional 150mm in the wheelbase. In addition, the six-seat version scores a unique set of wheels and an alternate bumper design.

Expect increased diversity from the Model Y in the future as Musk earmarks it for future sales growth. The controversial CEO confirmed the more affordable new model coming from the brand would be a variation of the Model Y and warned investors there would be more “rough” financial quarters ahead.

Musk said the biggest obstacle isn’t whether people want the Model Y, it’s simply that they can’t afford it.

“The more affordable we can make it, the better,” he told investors.

In Australia, Tesla had a significant boost year-on-year thanks to the new and heavily updated Model Y earlier in 2025.

The Model Y currently starts from $58,900 for a base rear-wheel drive, it used to be one of the most affordable new electric cars on sale in Australia. It is now comfortably beaten in the SUV space by the Leapmotor C10 (from $45,888) and Geely EX5 (from $40,990). It is also facing stiff competition from the BYD Sealion 7 (from $54,990) and XPeng G6 (from $54,800).

BYD’s Sealion 7 has done impressive numbers since its recent arrival, the Leapmotor C10 has yet to set the charts on fire despite its bargain pricing, having moved just 309 units this year. The Geely has fared much better, having moved 1845 units.