Tesla has postponed the U.S. release of its anticipated lower-cost Model Y, codenamed E41, pushing the launch to late 2025 or early 2026. This delay comes as the company grapples with declining sales and challenges related to new tariffs.
The E41, designed to be 20% cheaper to produce than the current Model Y, was expected to revitalise Tesla’s lineup and attract a broader customer base. However, the postponement raises concerns about Tesla’s ability to maintain its market share amid increasing competition and an ageing product range.
Tesla’s U.S. sales have been impacted by a 13% drop in global deliveries, marking the lowest level in nearly three years. Analysts attribute this decline to various factors, including production delays and CEO Elon Musk’s political affiliations, which have influenced public perception.
Additionally, new tariffs imposed by the Trump administration have disrupted Tesla’s supply chain, particularly affecting the import of components from China. These trade policies have forced Tesla to reassess its sourcing strategies and production timelines.
The delay of the affordable Model Y underscores the broader challenges Tesla faces in sustaining growth and innovation in a rapidly evolving electric vehicle market.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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