Tesla's plan to introduce a more affordable electric vehicle has been delayed. Originally slated for the first half of 2025, the launch is now expected in late 2025 or early 2026. This new model, internally codenamed E41, is anticipated to be a streamlined version of the Model Y.
The decision to postpone the launch comes as Tesla shifts its focus towards its robotaxi project and next-generation Model Y. The affordable EV is expected to be priced higher than the initially targeted $25,000. Tesla aims to produce 250,000 units of this new model in the U.S. by 2026, with plans to expand production to China and Europe.
This delay could allow competitors like BYD and Hyundai to gain ground in the affordable EV market. Tesla's strategy involves utilizing existing model platforms to expedite the release of new vehicles. A more basic version of the Model 3 is also reportedly in development.