After her fifteenth birthday, Rachel McKnight, a member of a fundamentalist Mormon community in Utah, listens to a cassette recorder for the first time and hears a cover of “Hanging on the Telephone” by an obscure rock band on a blue cassette. Her brother, Mr. Will, takes it from her, stating that it is to be used only for God’s purposes. When she discovers she is pregnant, she is convinced that she has conceived miraculously, like the Virgin Mary, through the medium of the cassette.
After being questioned by her parents, Mr. Will is blamed for impregnating her and is asked to leave the community, while Rachel is told she will be married the next day. Rather than undergo a shotgun marriage arranged by her father, Paul, she escapes to Las Vegas, along with Mr. Will, who is sleeping in the bed of the family’s pickup truck.
In Las Vegas, Rachel falls in with a group of skaters who live together and play in a band, after becoming intrigued by one of the boys who wears a shirt with a cassette on it. Mr. Will finds her and pleads with her to confess to having sex with someone else so that he can return to their community. Rachel becomes romantically involved with Clyde, one of the skaters, and one night he offers to marry her, saying that together they can look for the man on the tape, who Rachel thinks is the father of her child.
When Clyde and Rachel break into his parents’ house looking for food and money, Clyde’s father calls the police and Mr. Will is arrested while Rachel flees. Remembering one of her mother’s bedtime stories, she impulsively follows a red Mustang and discovers that its owner, Tim, is the man who recorded the tape, and is, in fact, her biological father.
Finally, Rachel decides to return to her community. Mr. Will is bailed out of jail by Tim, who is looking for Rachel. Together, he and Mr. Will drive out to the community, and on the way they discover Clyde, whose van has broken down on the highway. As Rachel is about to be wed, Tim, Mr. Will, and Clyde pull up in front of the church in the red Mustang and rescue her. Mr. Will returns to the community and is accepted back with a confession that Rachel has recorded on the blue cassette, although she still firmly believes that God has fathered her child. Some months later, Clyde and a visibly pregnant Rachel are living in a tent by the beach and hold hands as they walk through the waves.
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