Tesla's "Made in America" delayed? The low-priced Model Y may be produced this year or postponed until next year
Reports indicate that the production of Tesla's low-cost version of the Model Y has been delayed by several months, originally scheduled for release in the first half of the year, now pushed to the third quarter to early next year. The goal is to produce 250,000 units in the U.S. by 2026, with plans to eventually produce in China and Europe as well
Tesla's highly anticipated affordable model plan has been thwarted, with the production of the low-cost Model Y in the United States being delayed by several months.
On Friday, Eastern Time, media reports indicated that Tesla had originally promised to launch a more affordable electric vehicle in the first half of this year, but the production schedule in the U.S. has now been postponed. The production of this low-cost Model Y (internal code E41) is expected to be delayed until the third quarter to early next year, significantly later than Tesla's publicly promised timeline.
Currently, the price of the Model Y Long Range All-Wheel Drive version in the U.S. market is about $49,000 (not including the $7,500 tax credit). Previous reports indicated that the upcoming E41 will be smaller than the current Model Y, with production costs expected to decrease by 20%.
Reports suggest that Tesla aims to produce 250,000 of these cheaper Model Ys in the U.S. by 2026. Notably, this new vehicle is also planned to be produced in China and Europe eventually.
Supply Chain Risks and New Model Outlook
With Trump imposing a 25% tariff on cars and auto parts imported from outside the U.S., automakers are facing risks of price increases and supply chain disruptions.
Reports indicate that over the past two years, Tesla has increased the proportion of parts sourced from North America for many of its models, which will reduce the impact of tariffs on the E41. However, aside from tariffs, Tesla still faces multiple severe challenges.
The report noted that the company announced its 2024 delivery data on January 2, marking the first historical decline in delivery volume, with analysts expecting sales to continue to decline this year.
The factors contributing to the sales decline are varied, including the damage to brand reputation caused by Musk's close collaboration with Trump and support for far-right political figures in Europe. The aging product line of Tesla and the lack of relatively affordable models are also significant challenges the company faces.
Tesla is scheduled to announce its quarterly results next Tuesday, and the plans for new models will be a major focus for investors. Musk had previously promised to launch a new, cheaper electric vehicle platform, with models expected to be priced as low as $25,000, but later abandoned this plan in favor of prioritizing the development of a robotaxi business