Tesla CEO Elon Musk has confirmed that the company’s long-promised more affordable electric vehicle is not a new model, but rather a stripped-down version of its bestselling vehicle, the Model Y. The new, cheaper Model Y is expected to go into production in the second half of 2025 and will appeal to customers who want to buy a Tesla but can’t afford one.
To make the Model Y more affordable, Tesla plans to reduce costs by removing or downsizing premium features such as leather interior, mechanical seat adjusters, and infotainment screens. Some commenters suggested reducing the number of cameras on the vehicle, which could impact its autonomous capabilities.
The battery is seen as a major cost-saver for Tesla, with the company already utilizing low-cost lithium-iron-phosphate (LFP) chemistries in its cheapest EVs. However, many commenters expressed skepticism about the idea of a stripped-down Model Y, citing concerns that it may not be able to achieve significant price cuts and could cannibalize sales from other Tesla models.
Source: https://www.theverge.com/tesla/713026/tesla-cheaper-model-y-stripped-down