TESLA has delayed its affordable EV once again, after promising affordable cars for years.
Elon Musk’s company has long promised an affordable vehicle to bolster sales but buyers will be forced to keep waiting.
A cheap and very basic Model Y car was expected to arrive in the first half of this year.
But it has now been postponed by “at least several months”;, according to a report by Reuters.
The more affordable vehicle, codenamed E41, may begin production as early as the third quarter of 2025, or possibly even later, according to sources speaking to Reuters.
The company hasn't disclosed the cause of the delay, but the report comes at a time of significant financial volatility in the industry, with tariffs expected to have a major impact on the markets.
Elon Musk‘s focus on overseeing the Department of Government Efficiency (DOGE) has also been suggested as a contributing factor to the delay of the affordable EV.
The company had initially planned to release a standalone $25,000 car in 2025, but Musk is said to have scrapped those plans, shifting focus to a two-door Robotaxi, called the Cybercab.
The Cybercab is expected to launch in 2026.
Tesla is now looking to introduce a more affordable Model Y, followed by a cheaper Model 3 in the future, according to Reuters.
Production of the more affordable model is set to begin in the US by late 2025, with production also starting in China in 2026.
The vehicle will be smaller and 20 percent less expensive to manufacture compared to the standard Model Y, according to the Reuters report.
Currently, the most affordable Tesla is the Model 3 Long Range AWD, priced at $44,130 (or about £33,182), including destination fees.
The starting price for the Model Y is at least $50,380 (or about £37,880).
Tesla has faced significant challenges in recent months, with its stock plunging across Europe due to backlash against Musk's drastic measures at the Department for Government Efficiency (Doge).
Tesla cars have also been vandalized across Europe and the US as a form of protest against Musk's actions.
The Tesla CEO has become an increasingly controversial figure both globally and particularly in the US.
He has been accused of making a Nazi salute during Trump's inauguration, getting involved in the UK's immigration debate, and openly mocking and marginalizing the transgender community.
These controversies have had a ripple effect on his Tesla sales, which dropped by 45 per cent in Europe in January.
Following the major decline in profit and sales, Musk has said he intends to “substantially” reduce his involvement in the US government.
