Can the Upcoming Event Reposition Tesla in the EV Market?

In Focus

• Tesla’s teaser videos hint at an October 7 event
• Teasers videos pushed Tesla stock up 3%
• Analysts speculate unveiling a low-cost Model Y or the next-gen Roadster
• Tesla CEO Elon Musk has promised the next-gen Roadster for years

Speculations that a new car could be unveiled during the upcoming Tesla event remain rife following a teaser video posted on X. According to Reuters, the EV maker teased an event where analysts and investors expect an affordable car model that can sustain sales.

What will Tesla Unveil at the October 7 Event?

Tesla posted two videos on October 5, 2025. The first video hinted at the Tesla October 7 event by featuring the numbers “10/7” at the end. It showed a spinning component that most people say could be an internal component of a Tesla vehicle. The second nine second video showed a vehicle with illuminated headlights against a dark background.

The teasers triggered online discussions with two suggestions emerging. Some analysts suggest that Tesla could be planning to unveil the next-generation Roadster that CEO Elon Musk has promised for years. Musk teased the Roadster concept in November 2017 and June 2018.

“The new Roadster is something special beyond a car” Musk posted on X in September 2025. Other analysts suggest it could be the long-awaited affordable Tesla Model.

“Tesla is teasing something big as a flurry of X posts has fans bracing for what looks like the launch of a more affordable Model Y tomorrow,” Senior Equity Analyst at Hargreaves Lansdown Matt Britzman said. October 7 event video teasers pushed Tesla stock up 3% in early trading on October 6, 2025.

Will the October 7 Event Impact Tesla’s Sales Strategy?

The unveiling of Tesla’s new model on October 7 could be a game changer for the company’s sales strategy. The affordable Tesla Model Y is about 20% cheaper to manufacture than the refreshed model. By cutting down on production cost, the EV maker could manufacture up to 250,000 units per year in the U.S. by 2026.

“An entry-level Model Y should help keep volumes humming as tax credits roll off, but the price tag will be the real tell, offering clues on how far Tesla has pushed cost savings and how much new demand it can unlock,” Britzman added.

Previously, the EV maker has delayed unveiling Tesla low-cost Model Y in the U.S. In June 2025, the company said it had developed the initial production versions of the vehicle but sales would commence in the fourth quarter. Tesla also said it intended to gradually increase production, but not as fast as originally expected.

Tesla’s October Event at a Glance:

• First teaser video ends with “10/7” suggesting October 7 event
• Tesla’s October 7 event could change EV maker’s sales strategy
• Tesla’s affordable Model Y costs 20% less to manufacture
• Investors hold the view that a low-cost Model Y could boost Tesla sales

Tesla’s Future Outlook

Tesla’s teaser comes days after the company hiked lease prices across its U.S. lineup upon expiry of the $7,500 federal EV tax credit. The teaser also comes soon after the company posted record high deliveries in the third quarter. These sales were driven by increased EV purchased as achieved prior to expiry of the EV tax credit. Without the tax credit, analysts say Tesla sales in the U.S. could drop.

Investors are of the view that an affordable version of Model Y could boost sales in the coming months. Overall, they expect Tesla deliveries to hit a high of 1.85 million units. Out of this, the low-cost Model Y is expected to account for 155,610 units in 2026. For a long time, the EV maker has been relying on incremental upgrades to Model Y and Model 3 to drive sales.

Last year, Tesla unveiled the Cyber truck. However, the company has struggled to sell the vehicle and has offered thousands of dollars in discounts for cars in inventory. Tesla July sales dipped in Europe where it faces stiff competition from Chinese automakers like BYD and Xpeng. Chinese companies have been unveiling low-cost EVs in the European market, a move that has pressured Tesla to unveil a more affordable vehicle model.