The cheapest Tesla yet in China has no leather, no glass roof, and maybe less legroom

The cheapest Tesla in China might well have just been revealed online.

Leaked reports and photos from China shows that this new Tesla prototype is going into production.

Based on the images, this does indeed appear to be ‘just be a Model Y’.

And it does not appear to have leather, a glass roof, or a lot of legroom.

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Cheapest Tesla has been found in China

For what feels like an eternity, Tesla has been teasing a brand-new, budget EV.

Reports and rumors have varied wildly as to what this budget EV from Tesla might look like.

Some have suggested that it could be a brand-new, standalone Tesla model.

Other rumors have been adamant that this more affordable Tesla would simply be an offshoot of the Model Y.

And the latest evidence from China confirms that the latter rumors have won out.

During Tesla’s Q2 2025 earnings call, brand CEO Elon Musk confirmed the truth.

This latest, upcoming cheapest Tesla in China ‘is just a Model Y.[

And, based on the evidence, it is a very minimalist, reduced take on the Model Y.

A prototype found in China confirmed that many of the luxury features have been stripped away.

Gone are the vegan leather seats, the panoramic sunroof and the rear infotainment system.

One of the most interesting images appears to show much less legroom in the rear.

It is this image that has sparked suggestion of a shorter wheelbase in this new variant.

At the risk of stating the obvious, the success of this cheapest Tesla will come down to one thing.

Its success will thrive or die on how much cheaper it is compared to the standard Model Y.

The new Tesla Cybertruck RWD, for example, has been roundly criticised by the masses.

It has been poorly received for making too many reductions for not enough of a price cut.

Whether this stripped-down Tesla Model Y will suffer the same fate or not is firmly up for debate.

Pricing point will be absolutely vital for Tesla

CEO Elon Musk also confirmed on the Q2 earnings call that this cheapest Tesla will be available in the U.S. as well.

As a result, the pricing point is going to be absolutely vital – especially at this juncture for Tesla.

The brand is under extreme pressure across markets from rival brands.

In the U.K. and Europe, Tesla is seeing its market share getting eaten into by brands such as BYD.

This is because said brands are providing EVs at much more competitive prices.

Even in the U.S, Tesla is facing stiffer and stiffer competition from various rivals.

This cheapest Tesla could be the brand’s only chance at reversing momentum in 2025.