Tesla Delays Cheaper Model Y to Late 2025

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Tesla pushes back the launch of its cheaper Model Y from early 2025 to late 2025 or early 2026, disappointing budget-conscious EV shoppers.

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The more affordable "E41" Model Y will be smaller and cost Tesla 20% less to produce than the current model, which starts at $49,000.

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Tesla aims to make 250,000 of these budget-friendly SUVs in the US by 2026, with production later expanding to China and Europe.

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To slash costs, Tesla will likely strip features like the second-row screen and premium materials, similar to what they did with a basic Model 3 in Mexico.

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This delay comes as Tesla reported its first-ever annual delivery decline last year, putting more pressure on the company to attract new customers.

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Tesla CEO Elon Musk abandoned plans for a $25,000 car on a new platform, choosing instead to focus on robotaxis and cheaper versions of existing models.

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The postponement leaves Tesla vulnerable as competitors introduce more affordable electric vehicles while buyers wait longer for a budget Tesla option.

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Tesla will face questions about this delay during its upcoming earnings call on April 22, when investors will seek clarity on the company's affordable EV strategy.

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