Tesla allegedly postpones affordable Model Y once more ahead of upcoming earnings call.
Looking forward to Tesla’s long-awaited “affordable” electric vehicle? Well, prepare to wait even longer. For years, Tesla has promised a cheaper, budget-friendly version of its electric vehicles. Each time these reports emerge, they are often followed by news that Tesla CEO Elon Musk “killed” the company’s latest affordable car project. However, the most concrete news about an affordable Tesla came late last year during the company’s earnings report. “Preparations remain underway for our offering of new vehicles — including more affordable models — which we will begin launching in the first half of 2025,” Tesla stated, even reinforcing the timeframe.
So, how’s that affordable electric vehicle coming along?
It’s been delayed once again, according to a new report. It’s unclear why the affordable Tesla model, known internally as E41, has been postponed this time. Sources indicate that the company is still planning to create the vehicle, with production expected to begin in the U.S. soon. The current timeframe for Tesla’s seemingly eternally delayed affordable EV is between the third quarter of this year and early 2026. Next year, the company could produce as many as 250,000 affordable Model Y vehicles.
While the price point for an “affordable” Tesla hasn’t been revealed, Musk has frequently discussed a target price of around $25,000 for an electric vehicle, which would be roughly half the cost of the current Tesla Model Y. The company may be betting that a more economical Tesla could help boost sales during this challenging period. Tesla’s sales have experienced a downturn in recent months. As a consequence, Tesla’s stock has also faced declines. The company has encountered backlash from consumers regarding Musk’s relationship with political figures and his involvement in federal projects. Protests have emerged globally, with Tesla sales in Germany plummeting by 76 percent. Additionally, Tesla owners are increasingly looking to trade in or sell their vehicles on the used car market at unprecedented rates.
