On April 18, Reuters reported that the release of Tesla’s budget-friendly model, which was initially slated for release this year, has been delayed.
This new model, a lower-cost variant of the Model Y known internally as E41, was originally scheduled for release in the third quarter of 2025. However, industry insiders now predict it may be pushed back to early 2026.
According to Reuters, Tesla aims to produce 250,000 units of the affordable Model Y in the United States next year, with plans to eventually expand production to China and Europe.
Although the exact reasons for the delay remain unclear, CEO Elon Musk recently emphasized to employees that robotaxis and autonomous driving are the top priorities. He noted that other vehicle platforms will take a backseat, fueling speculation that the budget electric vehicle (EV) project may have been effectively put on hold.
The postponement of the EV launch is expected to place additional pressure on Tesla, which is already grappling with weak sales. Market analysts attribute Tesla’s sales challenges to consumer backlash against Musk’s political activities and increased competition from other EV makers.
