Tesla’s highly anticipated budget-friendly Model Y is starting to take shape, with new details emerging from the company’s latest vehicle firmware. Renowned Tesla hacker @greentheonly uncovered key features of the stripped-down crossover, codenamed E41, which will sacrifice certain amenities to achieve a lower price point.
Among the notable changes are simplified audio options, a rear camera without a heater, and the absence of Tesla’s “air wave” ventilation controls in the center console. The E41 will also come equipped with a basic fiberglass headliner, limited cabin lighting, single-axis seat controls, and no power-folding mirrors. Additional omissions include puddle lamps, the glass roof, the second-row display, and even a Tire Pressure Monitoring System.
Externally, the new Model Y will sport a revised fascia design and simplified 18-inch wheels, along with a downgraded suspension. While RWD and AWD trims are expected, there has been no mention of a Performance variant in the code thus far.
An early production unit of Tesla’s affordable Model Y was spotted in July, showcasing a smaller form factor compared to the standard Model Y. This stripped-down model has been a long time in the making, with Tesla hinting at “more affordable models” for years. CEO Elon Musk confirmed that the project is not an entirely new car but rather a cheaper variant of the Model Y.
Production of the E41 technically commenced earlier this summer, as revealed by Musk during Tesla’s Q2 earnings call. However, full-scale production is slated to kick off in Q4 2025, potentially timed to coincide with the expiration of the U.S. government’s $7,500 EV tax credit on September 30.
The E41 is poised to become Tesla’s most affordable vehicle in North America yet, aiming to broaden the company’s market reach amidst intensifying competition in the entry-level EV segment. As more details emerge leading up to the official launch of Tesla’s cheaper Model Y, stay tuned for updates on this highly anticipated release.