Tesla’s long-awaited plans for a reasonable automobile include a US-made, stripped-down version of its best-selling electric SUV, the Model Y, however the production launch has been delayed, three sources with knowledge of the matter told Reuters.
Tesla has promised reasonably priced vehicles starting in the primary half of the 12 months, offering a possible boost to flagging sales. Global production of the lower-cost Model Y, internally codenamed E41, is anticipated to start within the US, the sources said, however it could be no less than months later than Tesla’s public plan, they added, offering a variety of revised targets from the third quarter to early next 12 months.
The explanation for the delay was not clear.
Two of the people said Tesla aimed to provide 250,000 of the cheaper Model Ys within the US in 2026. The brand new vehicle can be planned for eventual production in China and Europe, Reuters has previously reported. The delay of US production and the production goal haven’t been previously reported.
Tesla reports results on Tuesday, and plans for the brand new vehicles are a serious query.
The cheaper mass-market vehicles have been widely anticipated by Tesla fans and investors who hope they may attract a fresh group of shoppers and reverse the EV maker’s falling sales and eroding market share. Tesla also has refreshed its original Model Y with exterior and interior changes. The Long Range All-Wheel Drive version within the US costs about $49,000, before a $7,500 federal tax credit.
Reuters reported last month that the China launch of the E41 will occur in 2026. The E41 will probably be smaller and price 20% less to provide than the refreshed Model Y, the sources aware of China plans told Reuters. The timing of the rollout in Europe shouldn’t be clear.
Tesla can be planning to launch a bare-bones version of its Model 3 compact sedan, three people said.
Tesla didn’t immediately reply 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 12 months, and analysts expect sales to fall again this 12 months for several reasons, including damage to the brand repute by Chief Executive Elon Musk’s close work with President Trump and support of far-right European politicians.
One other challenge for Tesla is that its vehicles are aging and there isn’t any relatively low-cost model.
Musk earlier promised a brand new, cheaper EV platform with cars expected to be priced as little 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 US.
Tesla has increased North American sourcing for parts of many models during the last two years, which might decrease tariff exposure for the E41, two people aware of the matter said. It recently suspended plans to ship components from China to the US for the Cybercab and Semi truck attributable to tariffs, one person told Reuters earlier this week.
Tesla’s long-awaited plans for a reasonable automobile include a US-made, stripped-down version of its best-selling electric SUV, the Model Y, however the production launch has been delayed, three sources with knowledge of the matter told Reuters.
Tesla has promised reasonably priced vehicles starting in the primary half of the 12 months, offering a possible boost to flagging sales. Global production of the lower-cost Model Y, internally codenamed E41, is anticipated to start within the US, the sources said, however it could be no less than months later than Tesla’s public plan, they added, offering a variety of revised targets from the third quarter to early next 12 months.
The explanation for the delay was not clear.
Two of the people said Tesla aimed to provide 250,000 of the cheaper Model Ys within the US in 2026. The brand new vehicle can be planned for eventual production in China and Europe, Reuters has previously reported. The delay of US production and the production goal haven’t been previously reported.
Tesla reports results on Tuesday, and plans for the brand new vehicles are a serious query.
The cheaper mass-market vehicles have been widely anticipated by Tesla fans and investors who hope they may attract a fresh group of shoppers and reverse the EV maker’s falling sales and eroding market share. Tesla also has refreshed its original Model Y with exterior and interior changes. The Long Range All-Wheel Drive version within the US costs about $49,000, before a $7,500 federal tax credit.
Reuters reported last month that the China launch of the E41 will occur in 2026. The E41 will probably be smaller and price 20% less to provide than the refreshed Model Y, the sources aware of China plans told Reuters. The timing of the rollout in Europe shouldn’t be clear.
Tesla can be planning to launch a bare-bones version of its Model 3 compact sedan, three people said.
Tesla didn’t immediately reply 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 12 months, and analysts expect sales to fall again this 12 months for several reasons, including damage to the brand repute by Chief Executive Elon Musk’s close work with President Trump and support of far-right European politicians.
One other challenge for Tesla is that its vehicles are aging and there isn’t any relatively low-cost model.
Musk earlier promised a brand new, cheaper EV platform with cars expected to be priced as little 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 US.
Tesla has increased North American sourcing for parts of many models during the last two years, which might decrease tariff exposure for the E41, two people aware of the matter said. It recently suspended plans to ship components from China to the US for the Cybercab and Semi truck attributable to tariffs, one person told Reuters earlier this week.
