Tesla delays production of affordable Model Y without explanation

Tesla has delayed the launch of more affordable electric vehicles, including a stripped-down version of the Model Y codenamed E41, previously scheduled for the first half of 2025, Reuters has learned. The sources said the launch dates were pushed back by at least three months. The reasons for the decision are still unknown.

Image Source: Tesla

Last month, Tesla reported plans to begin production of the Model Y E41 in China in 2026. According to Reuters sources, the electric car will have a more compact size compared to the base version, and its production cost will be 20% lower than that of the updated Model Y crossover. The release date of the budget version of the Model Y E41 in Europe is still unknown.

Producing cheap “people’s” electric cars should become a major focus for Tesla after its weakest quarterly sales since 2022. Its deliveries fell to a three-year low in the first quarter of 2025, and its market share fell from more than 75% in 2022 to less than 50% in 2024.

The company is set to report earnings next Tuesday to investors who will be scrutinizing plans for new models. In light of weak sales, shareholders may press CEO Elon Musk to respond to criticism that his political activities continue to hurt his business, Bloomberg reports.

Automakers are currently taking steps to mitigate the impact of Donald Trump’s 25 percent tariffs on cars and auto parts imported from outside the U.S. That will inevitably impact prices and potentially disrupt the supply chain.

Tesla has increased North American parts supplies for many models over the past two years, sources told Reuters, which will reduce the company’s reliance on tariffs for the E41. The company recently shelved plans to ship parts from China to the U.S. for the Cybercab and Semi models because of rising tariffs.

admin

Share
Published by
admin

Recent Posts

GTX 750 Ti is no longer enough for the game: Ubisoft announced the system requirements of Rainbow Six Siege X

Publisher and developer Ubisoft has revealed the system requirements for Tom Clancy's Rainbow Six Siege…

22 hours ago

Asus Unveils ProArt GeForce RTX 5080 Graphics Cards with Wood Finish, USB-C, and M.2 Slot

Asus has brought wood grain textures to its graphics card lineup. The company has unveiled…

22 hours ago

AI agents: fas, profile, passwords, appearances

The perception of AI agents, their plans and hopes – as well as their impact…

22 hours ago

Asus Unveils GeForce RTX 5060 Gaming Laptops — $300-400 Cheaper Than RTX 5070 Models

Asus has refreshed its lineup of gaming laptops, introducing new configurations with Nvidia GeForce RTX…

22 hours ago

Microsoft Open Sources WSL, a Subsystem for Running Linux Applications on Windows

Microsoft has opened the source code of a set of tools that provide the Windows…

22 hours ago

Cisco’s quarterly results and outlook beat Wall Street expectations

Cisco Systems, an American supplier of enterprise networking equipment, announced results for the third quarter…

2 days ago