Tesla, the famous electric car company from the U.S., had plans to release cheaper electric vehicles, including a more affordable version of its popular Model Y SUV. However, the launch of this budget-friendly Model Y has now been delayed.
Tesla wanted to offer a lower-cost Model Y to boost its slowing sales. The new version, known internally as E41, was supposed to begin production soon in the United States. But now, sources say it might be delayed until the third quarter of this year or even early next year.
The company plans to build around 250,000 units of this affordable Model Y in the U.S. by 2026. Tesla is also planning to make this car in China and Europe later on.
This cheaper model has excited Tesla fans and investors, as it could bring in new buyers and help Tesla compete better in the market. The company recently updated the original Model Y, but it still lacks a truly low-cost model.
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The E41 version is expected to cost 20% less to build and will be smaller than the original Model Y. It is set to launch in China in 2026. Tesla is also working on a more basic version of the Model 3 sedan.
Tesla hasn’t officially confirmed the delay or shared details about the production goals.
Tesla’s sales dropped last year, and they may continue to decline. Some of the reasons include public criticism of Elon Musk’s ties with former U.S. President Donald Trump and support for far-right politicians in Europe.
Another problem Tesla faces is that its cars are getting older and it doesn’t yet have a low-cost model. Elon Musk had earlier talked about a new, cheaper EV that would cost around $25,000, but that plan was canceled to focus on developing robotaxis instead.
Recently, Tesla also paused shipments of parts from China to the U.S. for its Cybercab and Semi truck because of new import taxes.
