It ’s been a while sinceTesla gave a long - look makeover to its Model 3 EV , and followed it with theintroduction of an update Model Yin its home market . However , the caller ’s rumored architectural plan for a more low-priced SUV that will be get together in the US have reportedly go into a delay .
According toReuters , Tesla was hoping to get together nearly a one-quarter million units of its cheaper Model Y variant in 2026 . The goalpost has now been shifted , and there is no clarity regarding a revised securities industry launch plans for the vehicle , which is said to be in development under the codename E41 . .
“ orbicular production of the lower - cost Model Y , internally codenamed E41 , is expected to start in the United States , the sources said . That would hap at least a few months later than adumbrate in Tesla ’s public plan , they add , offer a range of revise target from the third quarter to early next class , ” says the report .
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What to expect from a cheaper Model Y?
The watered - down Model Y variant will reportedly have a smaller footprint and is vaunt to trade at a 20 % lower prickle toll . For comparison , the Long Range All - Wheel Drive ( AWD ) trimming of the Model Y currently goes for $ 41,490 in the US , after apply the federal tax quotation worth $ 7,500 in the US .
Based on the report , the upcoming car could be priced a pilus under the $ 40,000 mark before revenue enhancement credits are put into the mix . With an asking cost like that , Tesla would would put itself in unmediated competition with the like of Hyundia , Kia , Chevrolet , Toyota , Volkswagen , and Ford .
Notably , Tesla is say to have ramped up local sourcing of function in the past few one-quarter , which imply if the ship’s company move ahead with plans of sight manufacturing the Model Y “ E41 ” variant , the impact of tariff wo n’t be felt up as much . However , the situation remains volatile as Tesla has interpret a keen declination lately .
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The caller ’s market share slid below 50 % for 2025 ’s first quarter in California , one of the biggest EV markets in the country . “ An aging production lineup and rebound against Elon Musk ’s political initiatives are probable key ingredient for the declination in Tesla BEV market share , ” the California New Car Dealers Associationsaidabout the economic crisis .
In addition to a stripped down Model Y , the carmarker is currentlyoccupied with its Cyber Cab task . Interestingly , the Reuters composition cite that Tesla is also work on “ a bare - bone version of its Model 3 . ” The company was recently said to be working on an low-priced EV that could cost as trivial as $ 25,000 , butthose plans have been shelved , for now .
