Tesla Delays Affordable Model Launch

Tesla Delays Launch of Affordable EV

According to a recent report by Reuters, Tesla is postponing the release of its anticipated, more budget-friendly electric vehicle. The vehicle, speculated to be a significantly simplified version of the Model Y, was initially projected to be available in the first six months of this year.

However, the launch is now potentially delayed until late 2025 or early 2026, as indicated in the report.

Factors Contributing to the Delay

This postponement coincides with a decline in Tesla’s sales figures across numerous global markets. Several factors are contributing to this downturn.

An aging vehicle lineup is impacting consumer interest.
Elon Musk’s political stances and public involvement in U.S. government affairs are influencing purchasing decisions.
The Cybertruck has not met performance expectations.

The History of the $25,000 Tesla

The concept of a $25,000 Tesla was first introduced by CEO Elon Musk during the company’s “Battery Day” event in 2020.

At that time, Tesla was actively developing a new vehicle platform intended to reduce production costs by 50%. This platform was envisioned for both a new entry-level model – often referred to as the “Model 2” – and the company’s long-awaited robotaxi.

Shift in Development Strategy

Ultimately, Musk decided against utilizing the new platform for a fully drivable vehicle.

Instead, Tesla shifted its focus to creating more affordable variants of the existing Model Y SUV and Model 3 sedan. This strategic change appears to be the reason for the delay in introducing a completely new, lower-priced EV.