Tesla postpones the launch of its low-priced model until the third quarter, according to a report.
Tesla's Low-Cost Model Y (E41) Delayed, Launching in Q4 2025
Tesla's much-anticipated low-cost Model Y variant, codenamed E41, is set to launch in the United States towards the end of Q4 2025, with China following suit in 2026 [1][2][5]. Early production of the E41 began around June 2025, and Tesla's Chief Financial Officer, Vaibhav Taneja, confirmed that production started as planned in the first half of 2025 [4].
The E41, priced in the mid-$30,000 range, is approximately 20% cheaper to build than the standard Model Y [1][3][4]. This cost-effective variant is designed to broaden Tesla's customer base and maintain competitiveness in the EV market. Unlike a next-gen platform, the E41 is a feature-reduced version of the Model Y, allowing Tesla to bring an affordable EV to market faster without disrupting broader production plans [1][3][5].
In China, the E41 will be slightly smaller than the refreshed Model Y. The Model Y is also set to launch in Europe, though a specific date has yet to be revealed. The launch and pricing of the E41 in Europe remain unknown at this time [2].
Regarding Tesla's reported production target of 250,000 E41s in 2026, it remains unclear whether the delayed launch will impact this goal [1]. However, the E41 is positioned as a strategic effort to increase affordability and volume by simplifying existing Model Y production rather than building new lines, which should allow Tesla to meet or even boost production by leveraging existing infrastructure [1][2][4].
Tesla's results report is due on Tuesday [3]. The revised launch targets for the Model Y range from Q3 2025 to early next year, with the Model Y expected to launch several months later than Tesla's public plan of June [2]. Stay tuned for more updates on Tesla's E41 Model Y and its global launch plans.
[1] https://www.teslarati.com/tesla-model-y-e41-production-starts-h1-2025-elon-musk/ [2] https://www.teslarati.com/tesla-model-y-e41-china-launch-2026-price/ [3] https://www.teslarati.com/tesla-q1-2023-earnings-call-date-confirmed/ [4] https://www.teslarati.com/tesla-model-y-e41-production-starts-h1-2025-elon-musk/ [5] https://www.teslarati.com/tesla-model-y-e41-china-launch-2026-price/
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