Tesla has been very secretive about any details surrounding its affordable vehicles, but a new sighting seems to have provided a first glimpse at the company’s cheaper Model Y. Based on the sighting, it appears that the vehicle will indeed be a stripped-out version of the all-electric crossover, but it could be the perfect starter car for a Robotaxi service.

Affordable Tesla

During the second quarter earnings call, Tesla VP for Vehicle Engineering Lars Moravy stated that more affordable models will be available for everyone in Q4. He also confirmed that the production of the vehicles really did start in June, just as stated in Tesla’s previous Update Letters. 

Tesla executives, however, did not provide specific details about the affordable cars, save for a previous comment stating that they would be quite similar to what the company currently offers today. This has brought speculations that Tesla’s more affordable vehicles that were listed in its Update Letters will just be stripped-out versions of cars like the Model Y.

Recent Sighting

These speculations seemed to be accurate, at least based on a recent sighting of the affordable car that has recently been posted on social media. The video, which was reportedly captured in California, featured a stripped-out Model Y with several characteristics that will likely make it notably more affordable. 

Based on the video, it would appear that the affordable Model Y will feature no split headlights and no glass roof. The indirect light bar also seems to be absent from the vehicle. Inside, the vehicle did not seem to have cupholder covers and no rear screen. Its seats also look like Tesla’s non-ventilated vegan leather seats.

Interestingly enough, the vehicle, despite its evident cost-cutting measures, still features a front bumper camera. Considering that the car will be produced with Tesla’s AI6 chip, it would seem that Tesla is also designing the vehicle as an ideal car for its Robotaxi service.

Elon Musk has provided some details about Tesla’s AI6 production deal with South Korean tech giant Samsung. As per Musk, Samsung’s upcoming Texas fabrication facility will be dedicated to the production of Tesla’s AI6 chip.

Musk’s update suggests that Tesla is already laying the groundwork for the ramp of its next-generation products like the Cybercab and Optimus.

Samsung AI6 production reports

On Sunday, Bloomberg News claimed that Samsung will be producing semiconductors for Tesla in a $16.5 billion deal. As per the report, Samsung is currently producing Tesla’s AI4 chip, and the deal will help the South Korean tech giant gain some ground back from competitors in the semiconductor market.

Elon Musk confirmed the news on X, stating that the $16.5 billion is actually just the bare minimum. As per Musk, the deal with Samsung will likely be “much more than that.” And in a later comment, Musk clarified that the actual output of Samsung’s Tesla AI6 plant will “likely be several times higher” than what has been reported.

Musk shared a critical detail that would likely allow Samsung to maximize its AI6 output. “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,” Musk wrote in his post.

Elon Musk on AI5 and AI6

Tesla currently produces vehicles with its AI4 chip, which is produced by Samsung. As per the CEO, Tesla’s AI5 chip, which just finished its design, will be produced by TSMC. The AI5 chip will be produced initially in Taiwan, and then in Arizona, the CEO noted.

Elon Musk’s comments about AI6 and Samsung’s output suggest that Tesla is really preparing to enter a stage in its growth that involves production at a scale that’s never been seen before. Tesla’s speed is quite notable, though it seems safe to assume that the actual rollout of AI6 will still be a few years away. 

In a few years, Tesla will probably be mass producing the Cybercab and Optimus, as well as more affordable vehicles that will likely see more adoption from mainstream customers. This means that Samsung’s AI6 ramp will likely be just in time to support Tesla’s outputs for its Optimus bots, its Cybercabs, and its mass market affordable cars.

A Tesla executive gave a big update on the long-awaited Roadster project, confirming some recent rumors about an X post from CEO Elon Musk.

Musk said recently that he attended a meeting at Tesla’s Design Studio in Hawthorne, California, next to SpaceX headquarters. He added that there would be a “most epic demo” performed by the end of 2025, but did not give any details pertaining to what project it was related to.

Tesla Roadster to fill the void left by canceled Model S Plaid Plus: Musk

Last night, the X Takeover occurred in California, and Senior Vice President of Powertrain for Tesla, Lars Moravy, confirmed some big details about Musk’s post.

Much of the Tesla community believed it was about the Roadster, and that was the first thing Moravy confirmed. He also said that Tesla is “gearing up for a super cool demo,” and that they showed Musk some of the tech the company has been working on that will be implemented into the Roadster.

Moravy said:

“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind-blowing; We showed Elon some cool demos last week of the tech we’ve been working on, and he got a little excited.”

Tesla VP of Vehicle Engineering Lars Moravy on the new Tesla Roadster:

“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing; We showed Elon some cool demos last week of the tech… pic.twitter.com/EBB0c36xFA

— Sawyer Merritt (@SawyerMerritt) July 27, 2025

The Roadster has been in development for a very long time, and it has been delayed on many occasions. Tesla has stated that it will continue to add technology for a while, as COVID-19 has delayed some projects, and the company’s focus is on initiatives that will benefit humanity.

Nevertheless, many people have been waiting for the vehicle for a very long time. Some won it through the company’s referral program, while others have put down a $50,000 deposit. Tesla has been hinting that it is adding some interesting tech to the Roadster, including the SpaceX package that will help it hover and reach 0-60 MPH in just 1.1 seconds.

Tesla Roadster SpaceX Package’s 1.1-second 0-60 mph launch visualized in concept video

It sounds as if this could be one of the few things that Tesla could show off at the demo Musk hyped up last week.