Tesla (TSLA, Financial) is experiencing delays in the production of its anticipated affordable Model Y variant in the United States. Originally set to begin global production this year to boost declining sales, the simplified version of the popular electric SUV, internally coded E41, will now be delayed by several months. The new target is between the third quarter and early next year. The reasons for the delay remain unspecified.
Tesla aims to produce 250,000 units of this lower-priced Model Y in the U.S. by 2026. Plans for production in China and Europe have also been mentioned. The company is set to release its earnings soon, and the new model plans are expected to draw significant attention.
In the U.S., the current Model Y's price is approximately $49,000 before a $7,500 federal tax credit. The E41 variant, expected to be smaller and 20% cheaper to produce, is also planned for a 2026 launch in China. Tesla is also working on a streamlined Model 3 sedan. Despite the production delays, Tesla is striving to counter tariff issues by increasing North American part procurement.
