Tesla quietly delays long-awaited new model amid daunting hurdles — here's what's happening
The rollout of lower-cost Model Ys will now likely occur a few months later than initially planned.
As Reuters reported, three sources confirmed the delayed product launch of Tesla's basic version of its Model Y. The company's lower-cost Model Y, or E41, won't likely be available now until the third quarter of 2025 or early 2026.
Tesla hasn't specified the exact reason for the delay. However, industry experts have speculated about Elon Musk's political activities with the Trump administration and rising prices due to tariffs.
Reuters' sources said that Tesla plans to produce 250,000 cheaper Model Ys in the U.S. in 2026. The company plans to launch these EVs in 2026 in China; however, the European timeline is unclear.
Having more affordable EV options could help boost Tesla sales and contribute to the widespread adoption of clean energy transportation.
In the past, Musk promised EVs priced as low as $25,000. However, producing low-cost EVs has been put on the back burner in favor of other company pursuits, such as developing robotaxis.
However, if more people can afford EVs, the cleaner our roadways and communities will become. Accessible EVs contribute to a faster transition to sustainable transportation while helping drivers save money on fuel and long-term maintenance costs.
EVs that are more accessible to consumers could also help offset the damage to Tesla's brand reputation that has recently been caused by legal battles and political affiliations.
If you were going to purchase an EV, which of these factors would be most important to you?
Cost
Battery range
Power and speed
The way it looks
Click your choice to see results and speak your mind.
Although cheaper Tesla Model Ys are delayed, they are still coming and will be available for purchase in the near future. Reuters sources said the brand will also launch a bare-bones version of its Model 3.
Meanwhile, technological developments to improve EV batteries are helping extend the lifespan of EVs so that they are financially worth the investment.
If you don't want to wait for these versions to come out, you might consider used EVs, which are cost-efficient and increasingly available from dealers and private sellers. Tax credits through the Inflation Reduction Act have made used EVs even more affordable, although those savings may not be available forever.
The used EV market has been growing tremendously and offers one of the most affordable ways for drivers to commit to cleaner, greener car ownership.
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