Elon Musk has been promising a new Roadster for years, but now Tesla has so many problems that it's delaying yet another model.
The launch of Tesla's cheaper Model Y, the E41, is being delayed. Production will begin in the US with a goal of 20 percent lower costs than the current Model Y.
Tesla fans and investors must arm themselves with patience. The launch of the long-awaited, cheaper Tesla Model Y has been delayed.
The model, known internally as the E41, is now expected to first hit the market in 2026. The goal is to make the car at least 20 percent cheaper to produce.
The delay extends over several months.
Reuters writes this based on interviews with 'internal sources at Tesla'.
The reason for the electric car's delay is still a bit murky, but it is clear that Tesla has changed its original production schedule.
But when production does start at some point, it will initially be exclusively for the American market.
Tesla plans to manufacture 250,000 cars in the US, using the assembly lines that currently build the Model Y.
After the US launch, China will follow. This is expected to happen later in 2026. There are also considerations about production in Europe. In that case, it will take place at the factory outside Berlin.
However, a precise timetable for Europe has not yet been announced, creating uncertainty for European customers.
Cheaper Tesla: What is being cut?
Tesla also plans to introduce a stripped-down Model 3. Details are still scarce, but it will likely be based on the rear-wheel drive version.
To achieve the lower prices, Tesla will have to cut equipment. This could mean fabric seats instead of leatherette. The ventilated seats could also be cut.
Fewer speakers and other cabin savings are also likely, similar to the strategy seen with the base Cybertruck.
If Tesla goes out of line, even the size of the battery pack could shrink. However, this will negatively affect the car's range.
It's important to note one thing. Neither the cheaper Model Y (E41) nor the scrapped Model 3 is the much-talked-about Model 2 that Tesla put in the grave last year.
Challenges with tariffs and suppliers
Elon Musk promised a cheap electric car back in 2018. The price was supposed to be around $25,000 (approximately 175,000 Danish kroner). However, plans for that model were scrapped.
Tesla instead chose to focus on the self-driving RoboTaxi. Musk stated last year that a regular model at that price makes absolutely no sense.
This leaves a gap in Tesla's model program at the cheaper end.
The upcoming cheaper E41 model faces challenges. There is a 25 percent tariff on cars and their parts in the US. This could affect the final price for consumers.
To counteract the tariffs, Tesla has increased its sourcing of parts in North America. This is intended to reduce vulnerability to fluctuations in global supply chains. It is also intended to help keep production costs down.
Tesla originally expected to start production in the first half of 2025. It later said mass production would start in early 2026. Now the launch has been further delayed.
While we wait for the cheaper models, you can read much more about why Tesla refuses to accept their own cars in trade-ins.
