Tesla is pushing back the promised launch of a more affordable EV by months, according to a report from Reuters. The new model, which is supposedly a very stripped-down Model Y, was supposed to debut in the first half of this year but now might not come until late 2025 or early 2026, states the report.
This all comes as Tesla’s sales are tumbling in many parts of the world thanks to a combination of an aging lineup of vehicles, Musk’s far-right politics and involvement in the U.S. government, and the underperformance of the Cybertruck.
CEO Elon Musk first teased the idea of making a $25,000 Tesla at the company’s “Battery Day” event in 2020. Tesla was developing a new platform that would be 50% cheaper to build, which it planned to use to power this new model, often colloquially referred to as the “Model 2,” as well as the company’s mythic robotaxi.
But Musk ultimately killed the idea of building a drivable car on the new platform. Instead, he reportedly pivoted Tesla toward developing lower-cost versions of the Model Y SUV and Model 3 sedan.
