Core Viewpoint - Tesla's CEO Elon Musk revealed that the company's upcoming budget-friendly electric vehicle (EV) will resemble the Model Y, addressing investor inquiries during the latest earnings call [1][2][3]. Group 1: Product Details - The new affordable model is described as "just a Model Y," indicating a close resemblance to the existing model [3]. - No specific details regarding the model's features or release date were provided, although production of new vehicles, including more affordable options, is expected to begin in the first half of the year [3]. - The self-driving capabilities of the new model are anticipated to enhance affordability for customers, allowing them to potentially earn money by renting out their vehicles [5][6]. Group 2: Market Context - Musk identified the primary barrier to EV ownership as financial constraints, stating that many potential buyers lack sufficient funds rather than desire for the vehicles [4]. - The Model Y was the best-selling car globally in 2023, but Tesla faces increasing competition from lower-cost EVs offered by Chinese manufacturers [12]. - In the second quarter of 2025, Tesla's sales in China dropped nearly 12% year-over-year, with the company selling 129,000 vehicles [13].