Author: Abhirup Roy, Aditi Shah, Hyunjoo Jin
SAN FRANCISCO/New Delhi/Seoul (Reuters) – Tesla’s long-awaited plans for affordable cars include the US-made, stripped-down version of the Y Model Y’s best-selling electric SUV, but production launches have been delayed, with three sources stemming from the matter.
Tesla has promised to implement affordable vehicles from the first half of this year, potentially driving sales. Sources said global production of lower-cost Y is internal code-named E41 and is expected to start in the United States. They added that this will be at least a few months later than the public plans outlined in Tesla’s public plans, providing a series of revision targets from the third quarter to the beginning of next year.
The reason for the delay is not yet known.
Two Reuters said Tesla’s goal is to produce 250,000 cheap YS in the United States in 2026. It is also planned to eventually produce new cars in China and Europe. There has been no previous report on delays in U.S. production and U.S. production targets.
Tesla’s report results reported Tuesday that plans for new vehicles were a major issue.
Tesla fans and investors are widely looking forward to cheaper mass-market vehicles, hoping they can attract a new group of customers and reverse the decline in sales of EV manufacturers and erode market share. Tesla also refreshed its original model Y with external and internal changes. Prior to the US’s $7,500 federal tax credit, the US’s long-range all-wheel drive version costs about $49,000.
Reuters reported last month that the launch of E41’s China will take place in 2026. The production of E41 is small, and the production cost is 20% less than that of the refreshed model Y. The timing of the launch in Europe is unclear.
Tesla also plans to launch an exposed version of its Model 3 compact sedan, the three said.
Tesla did not immediately respond to a request for comment on the cheaper model Y, production targets and other details reported here.
The electric car maker reported on January 2 that its annual delivery fell for the first time last year, and analysts expect sales this year will be for several reasons, including close collaboration between CEO Elon Musk and U.S. President Donald Trump and support for extreme European politicians.
Another challenge for Tesla is that its vehicles are aging and there are no relatively cheap models.
