Tesla Teases Affordable Model Y Launch Amid Sales Challenges

Anticipation is mounting as Tesla teases a significant event scheduled for October 7, where the electric automaker is expected to unveil a more affordable vehicle. Investors are keenly watching to see how Tesla will counter its recent sales challenges and reveal plans for a cheaper Model Y.

This development follows Tesla's highest-ever third-quarter deliveries, driven by an increase in electric vehicle purchases ahead of a major tax credit expiration. Despite these figures, analysts predict a second consecutive annual decline in deliveries due to demand slowdown and CEO Elon Musk's controversial political stances.

The potential price cut of the Model Y, aimed at making production 20% cheaper, is crucial for Tesla's margins. Wall Street projections suggest that a cheaper model could boost deliveries significantly next year, with the electric car giant focusing on cost-saving innovations to sustain growth.

(With inputs from agencies.)