Tesla Plans for Cheaper Model Y to Address Global Sales Challenges

Elon Musk's company aims to unveil a low-cost electric vehicle in 2025, focusing on self-driving features and competitive pricing.

Tesla is reportedly developing a more affordable version of its Model Y, with production costs expected to be at least 20% lower than the current model.
The new budget-friendly Model Y, codenamed 'E41,' is planned for mass production in 2026, with manufacturing in China, Europe, and North America.
Elon Musk has emphasized that self-driving capabilities will be central to the design of the new model, dismissing the idea of a non-autonomous version.
Tesla's sales in China, its second-largest market, have declined significantly, with February 2025 sales hitting a two-year low due to increased competition from local rivals like BYD and Xiaomi.
Analysts suggest the introduction of an affordable model could help Tesla regain market share globally, as the company faces declining sales and political backlash in key regions.