Tesla is gearing up to launch an economical version of its popular Model Y, set to hit the roads next quarter. This budget-friendly Model Y, internally known as project E41, has made a camouflaged appearance near the Giga Shanghai factory.
Stripped of some features found in the Juniper refresh, this model won’t include the glass roof, LED light strip, or rear reflector. You’ll also find a lack of vented seats, A-pillar speakers, cupholder storage, and even clothing hooks. The headlights have been repositioned, suggesting the absence of the Juniper’s LED light bar.
Inside, the differences are clear. The ventilated seats are replaced with vegan leather mixed with cloth, and the rear display is missing. The central console has been redesigned, removing the cupholder storage, a move reminiscent of the economical Cybertruck version. Even the audio system has been simplified.
Surprisingly, there’s no change in size when compared to its luxurious counterpart, aligning with Elon Musk’s comments that the affordable Model Y won’t be more compact, unlike the anticipated Model 2. The aim is to keep production costs down by using existing dimensions and parts.
Meanwhile, a six-seat Model YL with a longer wheelbase is on the horizon but will come with a heftier price tag. The core mission of the budget Model Y is to remain cost-effective, reflecting Tesla’s strategy as it prepares for the expiration of tax credit subsidies on September 30, 2025. Reports suggest Tesla is targeting a $35,000 price point for this new trim, aiming to make it accessible while maintaining current manufacturing efficiencies.
