Tesla has promised affordable vehicles beginning in the first half of the year, providing a potential boost to flagging sales. Global production of the lower-cost Model Y, internally codenamed E41, is expected to begin in the United States, the sources said. That would occur at least a few months later than outlined in Tesla's public plan, they added, offering a range of revised targets from the third quarter to early next year.
Tesla reports results on Tuesday, and plans for the new vehicles are a major question.
Reuters reported last month that the China launch of the E41 will occur in 2026. The E41 will be smaller and cost 20% less to produce than the refreshed Model Y, the sources familiar with China plans told Reuters. The timing of the rollout in Europe is not clear.
Tesla did not immediately respond to a request for comment on the delay of production of the cheaper Model Y, production targets and other details reported here. The EV maker on Jan. 2 reported its first decline in annual deliveries last year, and analysts expect sales to fall again this year for several reasons, including damage to the brand reputation by Chief Executive Elon Musk's close work with U.S. President Donald Trump and support of far-right European politicians.
Another challenge for Tesla is that its vehicles are aging and there is no relatively cheap model. Musk earlier promised a new, cheaper EV platform with cars expected to be priced as low as $25,000, but dropped that to prioritize robotaxi development. Automakers are grappling with prospects of rising prices and supply-chain disruption, after Trump imposed 25% tariffs on vehicles and auto parts imported from outside the United States. Tesla has increased North American sourcing for parts of many models over the last two years, which would decrease tariff exposure for the E41, two people aware of the matter said. It recently suspended plans to ship components from China to the United States for the Cybercab and Semi truck due to tariffs, one person told Reuters earlier this week.
Read More Details
Finally We wish PressBee provided you with enough information of ( Tesla to delay US launch of affordable EV, a lower-cost Model Y, sources say )
Also on site :