A compact Tesla vehicle was spotted at Tesla Inc.'s TSLA Giga Factory in Texas amid affordable vehicle rumors.
The vehicle was first spotted in drone footage of Tesla's Giga Factory in Texas, covered in a protective sheet between two Model Y SUVs, shared by YouTuber Joe Tegtmeyer on August 29.
The unknown vehicle had noticeably smaller dimensions compared to the Model Ys and had a different roofline, which could point to a potentially new vehicle in the Tesla lineup.
Source: Joe Tegtmeyer via YouTube
The footage comes as the company had confirmed plans for an affordable vehicle in the lineup. Tesla CEO Elon Musk also confirmed at the second-quarter earnings call with investors that the affordable vehicle would be a stripped-down Model Y.
However, experts like Future Fund LLC's managing director, Gary Black, criticized Tesla for the decision, saying that a stripped-down Model Y would offer no incremental volume and lead to cannibalization.
The unknown vehicle, however, could point to a potential pivot in strategy for Musk's EV giant, which may now involve a more compact all-new model potentially targeting new segments in the U.S. to drive up lackluster domestic sales.
The vehicle's design and smaller dimensions could also point towards the upcoming Cybercab, which Tesla had unveiled in October last year. The two-seater vehicle with no steering wheels or pedals is at the forefront of Musk's self-driving and robotaxi ambitions.
Tesla has also announced price cuts and other offers for its vehicles amid a global sales slump. The company slashed the prices of its Model 3 Long Range sedan in China by 3.7% and is offering $0 down leases on used Model 3 and Model Y units in the U.S.
Tesla's sales fell dramatically in Europe, recording a 40.2% drop in July sales in the region as the company's rival and Chinese EV giant BYD Co. Ltd. BYDDY BYDDF gained more ground.
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Photo courtesy: Trygve Finkelsen on Shutterstock.com