Wait Longer for Affordable Tesla: Launch Expected to Be Delayed by at Least 3 Months

Release Expected Between Q3 This Year and Early Next Year

There are projections that Tesla's low-cost model, which was initially expected to launch in the first half of this year, may be delayed by more than three months.

On April 18 (local time), Reuters reported, citing three sources, that the launch of Tesla's new low-cost vehicles?including a more affordable version of the Model Y?has been delayed. According to the sources, the release of the low-cost Model Y, codenamed 'E41,' could be pushed back from the third quarter of this year to early next year.

Reuters Yonhap News

The reasons for the delay remain unclear. Two of the sources said that Tesla has set a goal to produce 250,000 units of the affordable Model Y in the United States in 2026, and ultimately plans to manufacture the vehicle in China and Europe as well.

Tesla did not respond to requests for comment regarding this report.

In its fourth-quarter earnings report released in January, Tesla stated that "plans for new vehicles, including more affordable models, remain on track for production to begin in the first half of 2025."

Bloomberg News, commenting on the reports of the delayed launch, assessed that "the release of an affordable mass-market electric vehicle is the main challenge for Tesla, which has recorded its lowest sales since 2022." Tesla's vehicle deliveries for the first quarter of this year, announced earlier this month, totaled 336,681 units?a 13% decrease from the same period last year and the lowest figure since the second quarter of 2022.

Market experts believe that the political activities of CEO Elon Musk, who is closely associated with U.S. President Donald Trump, have led to negative perceptions among some consumers. Additionally, the repeated delays in the launch of Tesla's low-cost new models, which force consumers to pay higher prices, are seen as factors contributing to the stagnation in demand.

Tesla is scheduled to announce its first-quarter operating results for this year on April 22.