Tesla‘s plans to launch a cheaper version of the Tesla Model Y crossover have been put on hold, with several sources indicating it will arrive anywhere from Q3 2025 to sometime in 2026 rather than the originally scheduled first half of 2025.
The same three inside sources told Reuters several factors might have delayed the reduced-price Tesla Model Y such as President Donald Trump‘s tariffs, but the exact reason is unknown.
The affordable Model Y variant, internally dubbed the E41, seems like an answer to some of the Tesla company’s current problems. With manufacturing inputs for it said to cost 20 percent less, it addresses the automaker’s need for a lower-priced, more attractive EV at a time of slumping sales. It would likely be priced closer to the $34,995 base MSRP of the Chevy Equinox EV than the $49,000 of the current model Y.
The Tesla E41 also appears as though it would help “tariff-proof” the company to some degree, with production of North American units intended to take place in the U.S. The automaker has also ramped up parts production within the United States to reduce the E41’s dependence on Chinese-manufactured components, which could drive its price higher despite U.S. assembly.
Tesla revealed it plans to make 250,000 units of the E41 in the U.S. during the first year of production, though that initial year may well now have been delayed. The company also plans to produce the E41 in Europe at an unspecified date and in China starting in 2026 for sale in those markets, adding a more affordable option to Tesla’s generally high-end lineup.
The 25-percent tariffs imposed or threatened by President Trump have not only potentially affected the rollout of the E41, but also the Tesla Cybercab, a robotaxi rivaling the now-defunct Cruise AV and Cruise Origin. The company’s Semi truck has also been delayed by the duties imposed by the new administration.
Elon Musk
Tesla sales are faltering from a combination of factors, according to the sources, including an aging portfolio, a lack of more affordable models, and lessened demand as some purchasers look elsewhere in response to Elon Musk‘s political views and involvement with the Trump administration.
Comments
ahhh the new buick
The New Buick is vaporware at this time
I have driven the 2025 Chevy Equinox EV. The Tesla Model Y will only beat it in performance. For everything else, especially in its interior, the Equinox is vastly superior.
Every EV in the US market is vastly superior to a Tesla!