Still Anticipating Tesla’s Budget-Friendly EV? You’ll Need to Hold On a Bit Longer

If you’ve been eagerly waiting for Tesla’s long-awaited affordable electric vehicle, it seems the anticipation isn’t quite over yet.

For years, Tesla has hinted at the prospect of a wallet-friendly EV, only for those expectations to be dashed repeatedly. Frequently, news of a new low-cost model is soon followed by reports that CEO Elon Musk has shelved the initiative — once again.

The most encouraging update arrived late last year, when Tesla indicated during its earnings report that it was in the process of preparing to introduce new vehicles, including more economical models. The company even pledged a launch timeframe in the first half of 2025.

So, what’s the current situation?

According to a recent report from Reuters, the affordable Tesla has faced another setback. Internally dubbed “E41,” the vehicle is still under development, but production timelines have been postponed. Although the precise cause of the delay isn’t clear, sources indicate that Tesla intends to manufacture the car in the U.S., with production possibly commencing sometime between Q3 of this year and early 2026.

Tesla is reportedly targeting the production of up to 250,000 units of this more affordable version of the Model Y next year. While no official pricing details have been released, Musk has previously mentioned a $25,000 price point — roughly half the current Model Y’s cost — to make Tesla vehicles more accessible and drive sales.

This push for affordability comes at a pivotal moment for the company. Tesla has experienced a downturn in sales over the past few months, which has also influenced its stock performance. The company is facing criticism regarding Musk’s political connections, including his relationships with former President Donald Trump and his participation in the federal cost-reduction initiative known as DOGE. Protests have erupted worldwide, and in Germany, Tesla sales have plummeted by a shocking 76 percent.

Meanwhile, current Tesla owners are increasingly seeking to sell their vehicles, with trade-ins and used Tesla listings reaching unprecedented levels. The used EV market is now saturated with Teslas, complicating the company’s attempts to regain its momentum.

So, while the vision of an affordable Tesla isn’t extinguished, it’s certainly on pause — once more.