The latest scoop on Tesla's compact Model Y: This stripped-down version is hailed as an "upgrade" by car owners.

More details about Tesla's more affordable new car have been exposed.

Some bloggers conducted on - site investigations in videos and found many detailed changes. For example, the entire front - end and headlight assembly have been redesigned, the center armrest has been opened up, and the rear - seat screen has been removed...

Most notably, Tesla's iconic glass sunroof has now been replaced with a solid roof panel.

Many netizens exclaimed that this is not a simplified version but clearly an upgrade.

There are also speculations about the car's price. It may be 20% cheaper than the Model Y, with the final price around $36,000.

What? What about the affordable car priced at $25,000 that Musk promoted?

The latest news indicates that it's on the way.

What does the compact Model Y look like?

This new car is said to be codenamed "Project E41" within Tesla. Legends about this car have been circulating for a long time.

Musk publicly included it in the production plan in 2020, and Tesla began preparations as early as 2022 to get ready for production in the first half of this year.

Some people speculate that it's a simplified version of the Model 3, and the new car may be called "Model 2"; others guess it's a simplified version of the Model Y, and the new car might be named "Model Q".

After several years of speculation, the actual progress of the new car has always been unknown, and there has been no conclusion about its appearance.

It wasn't until Tesla's recent second - quarter earnings conference that Musk updated the "log", stating that the new car has been put into production and admitting that "it looks very similar to the Model Y".

In recent months, many people have encountered a slightly camouflaged prototype car near Tesla's California factory:

From a distance, its shape is almost a slightly smaller Model Y. So, the outside world generally calls this car the "compact Model Y", "budget Model Y", etc.

Recently, a blogger named "Geek Pig" conducted an on - site investigation of the "compact Model Y" in the United States, and more details were exposed. There are obvious changes in both the appearance and interior.

First, look at the appearance. At the front of the car, Tesla has moved the headlight assembly upward and removed the front - running light strip.

However, the bumper camera has been retained, and it is estimated that the FSD/Autopilot hardware will not change.

At the rear of the car, the middle diffuse - reflection light strip has been removed. It may be just an outer - contour light group, similar to the new Model 3.

On the roof, according to the blogger "Garage No. 42", it is no longer Tesla's iconic all - glass roof but is replaced for the first time with a solid roof panel in the same color as the body.

Many car owners are very pleased with this design because the glass sunroof is often not used, and they have to install a sunshade curtain themselves when the sun is shining strongly. Some netizens even exclaimed that removing the sunroof is simply an "upgrade".

Next, look at the interior. There are also many changes.

The front - row center armrest has been made continuous, similar to the Cybertruck, but there is still enough space to place a phone.

The steering lever seems to be retained, but shifting should still be done through the screen.

The rear - seat screen is gone, and it can be seen that the rear - seat space is quite compact. However, according to the blogger, the seats have been raised, and there is still plenty of legroom.

The internal storage space has also been reduced. In addition to the change in the position of the front - row center armrest, there are no coat hooks in the car, and there seems to be no rear luggage rack.

Tesla has not revealed the price of the new car, but the outside world speculates that the final selling price is likely to be 20% lower than the Model Y.

Referring to the current price of the rear - wheel - drive Model Y in the United States, which is $44,990 (equivalent to about 322,500 yuan), based on this calculation, the starting price of this compact Model Y may be around $35,990 (about 258,000 yuan) (excluding subsidies).

This means that the new car needs to have a lower cost. Simply simplifying the headlight, sunroof, and other configurations is not enough.

Therefore, the simplification of the compact Model Y may go far beyond these.

What else might be simplified?

What configurations or functions might the new car cut? We can refer to the cost - reduced Model 3 that Tesla launched in Mexico last year.

The on - site investigation blogger said something right: "Where there is camouflage, it proves that there is a difference."

In the video, seeing the seats wrapped tightly all over the car, one can guess that there seems to be a lot going on with the seats of the new car.

The cost - reduced Model 3 in Mexico also made changes here.

First, the material is different. The material is no longer the usual vegan leather but has been replaced with fabric.

Next is the function simplification. Tesla no longer equips the car with ventilated seats and has also removed the heated front and rear seats and the heated steering wheel.

Cutting these functions can further eliminate various components required for seat ventilation and heating, such as electrical components, wiring harnesses, and piping systems, which significantly helps reduce costs.

In addition, on the "cost - reduced" model, Tesla's double - layer sound - insulating glass no longer covers the entire car but is only used on the front windows and windshield.

The audio configuration has also been downgraded. The Mexican - version Model 3 has reduced the number of speakers from 17 to 9, and two subwoofers have been removed, leaving only one amplifier.

Moreover, the RGB ambient lighting inside the car has been simplified to a pure - white light. Although it may only save a few dollars, every little bit helps.

Interior of the Mexican - version Model 3. Source: Not a Tesla App

According to foreign media Not a Tesla App, after these configuration simplifications, Tesla has reduced the price of the Mexican - version Model 3 by 50,000 Mexican pesos (equivalent to about 19,300 yuan).

With the successful attempt to reduce costs on the Model 3, we can roughly speculate that the E41 model will also reduce costs in these aspects, or even more.

According to Reuters, the cost of the compact version will be 20% lower than that of the Model Y, which is also consistent with the outside world's speculation about the selling price.

Tesla revealed at its latest earnings conference that this more affordable new car was put into production in the first half of this year and is produced on the production lines of the Model Y and Model 3.

The company plans to increase production capacity in the third quarter of this year and officially start selling in the fourth quarter.

However, Tesla has also warned that the speed of production increase may be lower than the initial expectation.

The reasons behind this come from two contradictions: one is the upcoming cancellation of the tax credit, and the other is the need to complete factory renovations first.

Specifically, as we mentioned before, the "big and beautiful" bill advocated by Trump will cancel the original electric - vehicle tax credit. After September 30 this year, there will no longer be a tax - policy incentive of $7,500 for new electric cars and $4,000 for used electric cars.

Without the car tax credit, it will increase the purchase cost for car owners, thus affecting Tesla's sales.

Therefore, to deliver as many cars as possible before the policy incentive expires, Tesla has launched the biggest promotional campaign in history in North America. Almost all models, except the new Model S and Model X, have participated in the promotion.

At the same time, Tesla's factories in California and Texas in the United States are now operating at full speed around the clock. This means that the factories have no time to transform the equipment for the more affordable new car.

However, the mass production of this car is a necessity.