Tesla, a global leader in electric vehicles, has once again postponed its long-anticipated affordable model. Initially announced years ago as a way to reach a broader customer base, the launch of this entry-level vehicle is now delayed once more.
According to a report by Reuters, the model internally codenamed E41 will not enter production before the third quarter of 2025 and may even be pushed into early 2026. While specific reasons for the delay haven’t been disclosed, rising import tariffs and supply chain complications are believed to be contributing factors. Whether Tesla CEO Elon Musk played a role in this decision remains speculative.
Tesla first floated the idea of a budget-friendly vehicle nearly six years ago, only to later cancel the project. In recent years, the plan was revived, this time as a base version of the Model Y. Rumors suggest a stripped-down Model 3 could follow in the future.
As of now, the Model 3 Long Range AWD starts at around $44,130 in the U.S., while the Model Y’s base price is about $50,380. The upcoming budget Model Y is expected to launch at approximately $30,000—but consumers may have to wait until 2026 to see it on the road.