Tesla enthusiasts have been eagerly awaiting the arrival of a more affordable Model Y, but it looks like they’ll have to wait a little longer. According to a recent report, production of Tesla’s budget-friendly model has been delayed by several months, pushing back its expected release date.
The highly popular Tesla Model Y received a significant refresh for the 2025 model year, with updates including exterior design tweaks, enhanced technology, and improved performance. The new model, dubbed “Juniper,” continues to be a top seller in the electric vehicle market. However, with a starting price of $50,630 for the Long Range All-Wheel Drive model, it falls short of the promised $25,000 price point for entry-level Tesla vehicles.
Originally slated to begin production in the first half of the year, the lower-cost Model Y, internally known as E41, is now expected to enter production between the third quarter of 2025 and early 2026. Tesla has set a target to produce 250,000 units of the E41 Model Y in the U.S. in 2026, a significant number considering the company’s production volume in previous years.
The exact pricing of the E41 Model Y remains uncertain, but sources suggest that it could cost 20% less to build than the standard Model Y Juniper. This could potentially bring the price closer to that of the Model 3, making a more affordable Tesla a realistic possibility for consumers.
In addition to the U.S. market, the E41 Model Y is also set to launch in China and Europe. While the European rollout timeline has not been announced, the Chinese market is expected to see the model in 2026. However, ongoing automotive tariffs could impact the timeline, as seen with recent suspensions of shipments for other Tesla models.
Investors and fans alike are hopeful that the introduction of more affordable Tesla models will help boost sales and attract a wider range of customers. Whether a budget-friendly Tesla with cutting-edge technology and performance capabilities can reverse the company’s recent sales struggles remains to be seen. But for now, Tesla enthusiasts will have to wait a little longer for their dream of owning an affordable electric vehicle to become a reality.