Tesla’s more affordable Model Y variant will not see a significant production ramp-up by the end of the current year, according to Lars Moravi, Vice President of Tesla Engineering. During the company’s quarterly financial results teleconference, Moravi indicated that Tesla will prioritize its existing models in the third quarter to mitigate potential complications, particularly with the federal tax credit for electric vehicles set to expire on September 30. He confirmed that this more accessible Model Y is slated for a broader launch and will be “accessible to all” in the fourth quarter.
These statements from Tesla leadership clarify previous speculation regarding the nature of the company’s “cheaper Tesla.” Contrary to rumors of a new Model 2, a smaller hatchback, or an entirely different vehicle format that would fulfill Tesla’s long-standing promise of a $25,000 car, the current indications point towards a variant of the Model Y. This version is expected to feature more basic functionalities or utilize more cost-effective materials, aligning with the definition of “accessible.” This interpretation is consistent with earlier reports from Reuters, wich detailed plans for a smaller, more economical Model Y with the internal codename E41.L.
