Tesla’s long-awaited affordable car plans have been delayed, with the production launch of a U.S-made, stripped-down version of its best-selling electric SUV, the Model Y, expected to occur at least several months later than initially planned.
The company aims to produce 250,000 cheaper Model Ys in the US by 2026, according to three sources with knowledge of the matter. This production target was not previously disclosed. The new vehicle, internally codenamed E41, is also planned for eventual production in China and Europe.
Tesla’s delayed plans come as the company faces challenges including aging models, Elon Musk’s political activity, and tariffs imposed by the US government. The EV maker has reported declining sales, with its first decline in annual deliveries last year.
The delay is due to unspecified reasons, but Tesla’s focus on robotaxi development and lack of relatively cheap models may have contributed to the delay. Additionally, automakers are grappling with rising prices and supply-chain disruption caused by tariffs imposed on imported vehicles and parts.
Source: https://www.reuters.com/business/autos-transportation/tesla-delay-us-launch-affordable-ev-lower-cost-model-y-sources-say-2025-04-18