New cheaper Tesla Model Y to battle Chinese upstarts
Speaking at a Q2 investor conference, Musk replied to a question regarding an upcoming new model and what it would look like, stating 'it's just a Model Y'. Lars Moravy, Tesla's Vice President of Engineering had whet appetites earlier this year by saying "the models that come out in the next months will resemble in form and shape the cars that we currently make."
During the call this week, Musk also reasoned why a cheaper Model Y version was important for the brand. "The desire to buy the car is very high. Just people don't have enough money in their bank account to buy it. Literally, that is the issue. Not a lack of desire, but a lack of ability. So the more affordable we can make the car, the better." Advertisement - Article continues below
Here in the UK, the Model Y kicks off £44,990 - though the Model 3 starts at £39,990 so we'd expect a cheaper Model Y variant to sit between the two. As for what the new car will feature, we expect it could be similar to the cheaper Model 3 that was unveiled for the Mexican market last year that does without vegan leather upholstery (trading for cloth instead) and removes features such as ambient interior lighting and heating functionality for the seats and steering wheel.
Production of the new Model Y variant is believed to have already started with Tesla claiming it has 'first builds of a more affordable model in June, with volume production planned for the second half of 2025.'
The addition of a cheaper Model Y should help Tesla fight back against falling sales. The Model Y was the best-selling EV in the world last year, but this year Tesla's overall deliveries and profits have taken a hit with revenue dropping 12 per cent - the firm's biggest drop in a decade.
Tesla also confirmed that both the autonomous Cybercab already in limited operation in Austin, Texas, and the big Semi truck, will enter volume production next year.
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