Key Takeaways
1. The upcoming budget Model Y, known as project E41, will likely miss features like a glass roof, LED light strip, and rear reflector.
2. Interior changes include the absence of ventilated seats, reduced audio system speakers, and modified central console without cupholder storage.
3. The budget Model Y will maintain similar dimensions to current models, avoiding changes to the wheelbase for cost reasons.
4. Tesla aims to price the budget Model Y around $35,000, targeting affordability as tax credit subsidies expire in 2025.
5. A larger six-seat Model YL is set to launch this fall, priced over $10,000 higher than the existing Model Y.
The upcoming Model Y from Tesla, which is set to launch next quarter, might miss out on some features. This budget version may not come with a glass roof, LED light strip, or rear reflector that were part of the Juniper refresh. Additionally, it is expected to lack vented seats, cupholder storage, A-pillar speakers, and even clothing hooks.
First Sightings of Project E41
This more basic Model Y, known internally as project E41, was spotted for the first time near the Giga Shanghai factory, covered in camouflage for testing. The headlights have been repositioned, suggesting that the LED light bar seen in the Juniper refresh could be absent in this more affordable model. The unique rear reflector that casts red light on the ground is also likely to be removed.
Changes Inside the Vehicle
The interior of this supposed budget Model Y is missing several features found in the current Juniper refresh. The ventilated front seats are not included, and the upholstery appears to be a mix of vegan leather and some fabric. There is no rear display, and the central console has been modified to eliminate cupholder storage, similar to what Tesla did with the lower-cost Cybertruck. The audio system has fewer speakers, particularly lacking those in the A-pillar, and the clothing hooks above the window have also been taken out.
Size and Future Plans
Besides these changes, the anticipated budget Model Y looks to be about the same size as its more equipped counterparts, as seen in the video below. This indicates that Tesla might keep the dimensions unchanged instead of undergoing the hassle of shortening the wheelbase. Elon Musk mentioned that Tesla’s affordable vehicle would be “smaller, to be certain,” but he was actually discussing a different model, tentatively called the Model 2, rather than this simplified Model Y.
During the Q2 investor call, Musk clarified that the less expensive Tesla set to be released in Q4 will just be “a Model Y” trim aimed at lowering costs, without calling it more compact. Adjusting production lines for a shorter version could be pricier than maintaining the current frame and components.
Pricing Strategy
While Tesla plans to introduce a larger six-seat Model YL with an extended wheelbase this fall, it will reportedly be priced over ten thousand dollars higher than the existing Model Y. The aim with the budget Model Y, however, is to keep costs as low as possible, utilizing the current production lines. Tesla is said to target a price of $35,000 to offset the loss of tax credit subsidies, as this budget version is expected to launch after the subsidies expire on September 30, 2025.
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