TLDR
- Tesla stock rose 2% in premarket trading after posting teaser videos on X platform
- Company hints at October 7 event with videos showing vehicle headlights and spinning wheel
- Investors anticipate announcement of affordable Model Y variant delayed from earlier timeline
- Record Q3 deliveries driven by rush before $7,500 federal tax credit expired September 30
- Lower-cost model designed to be 20% cheaper to produce with 250,000 unit annual capacity
Tesla stock gained ground Monday morning after the electric vehicle manufacturer released cryptic teaser videos pointing to an October 7 event.
The company shared two brief videos on social media platform X on Sunday. One showed vehicle headlights glowing in darkness while another displayed a spinning wheel with “10/7” appearing at the end.
TSLA shares moved up 1.9% to $438.06 in premarket activity. The stock had dropped 1.4% during Friday’s regular session.
Affordable Model Takes Priority
Investors have been pressing Tesla for a lower-priced vehicle option. This demand intensified after President Donald Trump’s tax and spending bill eliminated the $7,500 federal EV purchase tax credit earlier in 2025.
Tesla announced in June it had completed initial builds of a stripped-down Model Y variant. The company planned to begin sales in the fourth quarter but indicated production would ramp slower than expected.
The budget-friendly version costs approximately 20% less to manufacture than the standard refreshed Model Y. Industry sources indicate the model could reach annual production of 250,000 units in the United States by 2026.
Tesla just completed its strongest quarterly delivery numbers for the period ending September. Buyers rushed to purchase vehicles before the tax credit disappeared on September 30.
Without that incentive now available, analysts project Tesla sales will soften in upcoming months.
Model Lineup Faces Challenges
The automaker hasn’t launched a new mass-market vehicle in years. Tesla has depended on incremental improvements to the Model 3 and Model Y to drive revenue.
The Cybertruck represents Tesla’s most recent major product introduction. Sales performance has disappointed with the company offering substantial discounts on available inventory over recent months.
March recall documents showed Tesla produced 46,096 Cybertrucks between the November 2023 launch and early 2025.
2026 Projections
Wall Street analysts forecast Tesla will deliver 1.85 million vehicles in 2026. The affordable Model Y is expected to contribute 155,610 units that year based on Visible Alpha data.
Tesla stock has gained 6% year-to-date heading into Monday’s trading session.
The company has not provided details about Tuesday’s planned announcement. The teaser campaign offers no specifics about pricing, features, or availability of any potential new model.
Tuesday’s event could answer questions about the affordable vehicle’s production schedule and market positioning. Investors will be watching for concrete details about how Tesla plans to maintain sales growth without federal tax incentives.
The October 7 reveal represents a critical moment for Tesla as competition in the EV market continues to expand.
