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Tesla's New Model Y Doesn't Solve 1 Major Problem

The Model Y got cheaper, but there are less expensive options for consumers.

By Travis Hoium – Oct 9, 2025 at 6:30AM EST

Tesla (TSLA 0.88%) announced a new lower-cost Model Y, but it's still not competitively priced with other EVs available today. And with subsidies expiring, Tesla is in for a rough year or two.

*Stock prices used were end-of-day prices of Oct. 7, 2025. The video was published on Oct. 8, 2025.

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About the Author

Travis Hoium
Travis Hoium is a contributing Motley Fool stock market analyst covering solar energy, technology, and growth stocks. Before The Motley Fool, Travis was a mechanical engineer at 3M and founded a virtual reality company. He holds a bachelor’s degree in mechanical engineering and a master’s degree in business administration from the University of Minnesota.
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Travis Hoium has positions in Alphabet and Mobileye Global and has the following options: long December 2027 $5 puts on Rivian Automotive. The Motley Fool has positions in and recommends Alphabet and Tesla. The Motley Fool recommends General Motors and Mobileye Global. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Stocks Mentioned

Tesla Stock Quote
Tesla
NASDAQ: TSLA
$391.20
(-0.96%)-$3.81
Alphabet Stock Quote
Alphabet
NASDAQ: GOOGL
$302.27
(-0.42%)-$1.28
General Motors Stock Quote
General Motors
NYSE: GM
$72.30
(-1.57%)-$1.15
Alphabet Stock Quote
Alphabet
NASDAQ: GOOG
$301.52
(-0.56%)-$1.69
Rivian Automotive Stock Quote
Rivian Automotive
NASDAQ: RIVN
$14.86
(-2.88%)-$0.44
Mobileye Global Stock Quote
Mobileye Global
NASDAQ: MBLY
$7.58
(-0.20%)-$0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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