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Reports indicate that electric vehicle manufacturer Tesla is postponing the anticipated launch of a more affordable EV model by several months. Originally slated for release in the first half of this year, the debut of the new vehicle, believed to be a streamlined variant of the Model Y, is now projected to occur in late 2025 or early 2026, according to sources.
Tesla Reportedly Delays Launch of Budget-Friendly EV
This development arises amidst a downturn in Tesla’s sales figures across numerous global markets. This sales slump is reportedly attributed to several factors, including an aging vehicle lineup, public perception of CEO Elon Musk’s political stances and governmental engagement, and the underwhelming market reception of the Cybertruck.
Initial Plans for a $25,000 Tesla
Elon Musk initially unveiled plans to produce a $25,000 Tesla during the company’s “Battery Day” event in 2020. Tesla had been developing a novel platform purported to reduce manufacturing costs by 50%. This platform was intended to underpin the new, more affordable model, often informally dubbed the “Model 2,” as well as the company’s envisioned robotaxi service.
Shift in Strategy: Focus on Existing Models
However, plans to develop a fully autonomous vehicle based on this new platform were reportedly abandoned by Musk. Tesla instead allegedly redirected its focus towards creating more cost-effective iterations of its existing Model Y sport utility vehicle and Model 3 sedan.