Category: EV vehicles

March 17, 2025
BYD Challenges Tesla in Germany with New Factory Amid Model Y Issues
Key Takeaways
1. BYD plans to build an electric vehicle factory in Germany to avoid high European tariffs on Chinese imports.
2. This will be BYD’s third factory in Europe, adding to its existing facilities in Hungary and Turkey, with a total expected output of 500,000 vehicles.
3. Despite challenges like labor costs and productivity in Germany, BYD sees it as a key location for increasing brand recognition in Europe.
4. The new factory will compete directly with Tesla’s Gigafactory near Berlin, which is vital for producing the new Model Y.
5. Tesla is facing employee morale issues at Giga Berlin, linked to its sick leave policy, while sales in Europe are declining ahead of the new Model Y production.
BYD is reportedly set to establish an electric vehicle factory in Germany to sidestep European tariffs by manufacturing locally.
New Factory Plans
If this plan gets the green light, it will mark BYD’s third production facility in Europe, following its factories in Hungary and Turkey, which are expected to have an annual output of 500,000 vehicles. The increased tariffs on Chinese car imports, which can go as high as 35% due to alleged illegal government subsidies, along with an existing 10% tax, haven’t stopped BYD from boosting its exports and expanding its range of models in Europe. As a vertically integrated electric vehicle manufacturer, BYD produces its own batteries, allowing it to keep prices low even with the tariffs in place.
Challenges in Germany
Despite facing challenges related to worker productivity and the costs of labor and energy in Germany, BYD has reportedly identified the country as its preferred location for enhancing brand awareness among European consumers. Chinese officials have also been visiting Volkswagen factories that are expected to shut down, likely aiming to take advantage of the existing infrastructure and skilled workforce in those areas.
Competing with Tesla
Should the BYD factory in Germany come to fruition, it will directly compete with Tesla, which already operates a Gigafactory near Berlin. This facility is crucial for the complex production line adjustments and ramping up manufacturing that recently introduced the new Model Y Juniper refresh, which is a successor to the world’s best-selling vehicle, launching simultaneously from four global Gigafactories.
Tesla’s Employee Issues
However, Tesla is currently grappling with issues regarding employee morale at Giga Berlin. The company’s sick leave policy has reportedly led to the suspension of payments to workers whose claims are deemed questionable. Tesla has expressed concerns about the unusually high number of sick leave requests during the Model Y production ramp, challenging employees to “release their doctors from their duty of confidentiality” to clarify their health issues preventing them from working.
This has understandably sparked backlash, as German law prohibits withholding pay from employees on sick leave. Tesla attempts to navigate this by claiming they are only withholding overpayments from prior sick leave submissions. Meanwhile, Tesla’s sales in Europe, particularly in Germany, are plunging ahead of the Model Y Juniper production increase. The upcoming quarter will be vital to determine if this decline is linked to Elon Musk’s controversial political stance or if potential customers are simply awaiting the new Model Y.
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Tags: BYD, Model Y Juniper, Tesla
March 17, 2025
UK Car Leasing Company Reaches 100% Electric Fleet Early
Key Takeaways
1. Zenith achieved 100% fleet electrification five years ahead of schedule as part of its EV100 commitments.
2. The company joined the EV100 initiative in 2020 to eliminate fossil fuel vehicles from its lineup.
3. CEO Ian Hughes emphasizes the importance of leasing companies in the UK’s transition to net zero.
4. Zenith is actively supporting clients in their transition to electric vehicles and achieving net zero goals.
5. The EV100 initiative aims to promote zero-tailpipe emission mobility and make electric vehicles the standard by the end of the decade.
UK-based car leasing firm Zenith is celebrating after achieving its 100% fleet electrification target five years ahead of schedule.
Zenith proudly claims a fully electric fleet, accomplishing this milestone five years early as part of its EV100 commitments. The vehicle leasing firm became a member of this initiative in 2020, focusing on removing fossil fuel vehicles from its corporate lineup.
CEO’s Perspective
Ian Hughes, the CEO of Zenith’s Corporate and Consumer sectors, shares insights about the company’s push for sustainable transportation: “The effects of climate change are being felt now more then ever before, and we understand the role leasing companies play in the UK’s path to net zero.”
“Since joining the EV100 in 2020, we’ve put in a lot of effort to drive real change. I feel proud that we’ve reached a key mark, achieving our 100% BEV colleague company car target five years ahead of the original timeline,” he added.
Supporting Customers in the Transition
In addition to exceeding its own carbon-emission reduction goals, Zenith is also assisting its clients in transitioning to electric vehicles and achieving net zero.
The EV100 initiative, created by the Climate Group, strives to hasten the shift to zero-tailpipe emission mobility and aims to make electric vehicles the standard by the end of this decade. Participants in the program commit to electrifying their fleets and offering EV charging facilities for both employees and customers.
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Tags: electric vehicles, EV100, Zenith
March 17, 2025
Tesla Repair Costs High, But Insurance Claims Like New Gas Cars
Key Takeaways
1. High Repair Costs: Teslas have the highest average insurance claims, with repair costs exceeding $6,236 for electric vehicles, significantly impacting insurance rates.
2. Comparison with Other Vehicles: Mild hybrids are the least expensive to repair, averaging $4,726 per claim, while plug-in hybrids cost about $5,583.
3. Impact on Rental Companies: High insurance costs and long repair times have led rental companies like Hertz to avoid Tesla vehicles, resulting in financial losses for them.
4. Concerns About Vandalism: Rising vandalism rates linked to political activities surrounding Elon Musk may lead to increased insurance premiums for Teslas.
5. Tough Choices for Buyers: Car buyers face difficult decisions between keeping older gas-powered vehicles or opting for mild hybrids due to the high insurance rates of electric vehicles.
Insuring a Tesla can be quite expensive, as many owners will tell you, and a recent study from parts supplier and insurance company Mitchell explains why that is.
High Repair Costs
Interestingly, Teslas have the highest average insurance claims compared to all other brands and types of vehicle propulsion. Last year, the average cost to repair an electric vehicle (EV) in the United States was $6,236, while Tesla repairs tend to be even more expensive. The Model Y and Model 3 contribute largely to the majority of EV claims.
Comparison with Other Vehicles
In contrast, mild hybrids are the least expensive to fix, averaging $4,726 per claim for insurers in the US in 2024. Plug-in hybrids, however, do not fare as well, with an average claim cost of $5,583, which is quite substantial.
Many Tesla owners, who have received some outrageous estimates for minor repairs like bumper replacements, might believe these figures underestimate actual repair costs. It’s important to note that these are just average claims.
Impact on Rental Companies
The high costs of insurance and lengthy repair times have led rental companies like Hertz to shy away from Tesla vehicles, resulting in a significant loss when they sold off their Tesla EV fleet.
In the past year, insurance rates for the top-selling electric models in the US rose by 28%. This is double the increase seen in internal combustion engine (ICE) vehicles, making electric cars 23% more expensive to insure, with an average rate of $3,430. Data analyst Matt Brannon mentions that as of February 2025, the “Tesla Model 3, Model Y, and Model X are the priciest EVs to insure,” with the Model 3 costing around $4,362 per year.
Concerns About Vandalism
The Cybertruck, which was once considered uninsurable, is close behind, with an annual insurance rate of $3,813. Insurers are also concerned about rising vandalism rates against Tesla cars linked to Elon Musk’s recent political activities, which could lead to even higher insurance premiums.
For Tesla owners seeking reassurance, their average insurance claim cost is similar to that of newer gasoline-powered vehicles. As cars become more complex, the latest models filled with electronics and sensors recorded an average claim cost of $6,127 in the US last year. This is only slightly less than the average for electric vehicles, particularly Teslas.
Tough Choices for Buyers
This situation leaves car buyers in a tough spot. They have to choose between keeping their older gas-powered vehicles to avoid high insurance rates or opting for mild hybrids instead.
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Tags: EV insurance, Model 3, Tesla
March 16, 2025
Tesla Model S Plaid vs Xiaomi SU7 Ultra: Unexpected Drag Race Result
Key Takeaways
1. Xiaomi has entered the electric vehicle market and sells over 20,000 cars monthly.
2. The Xiaomi SU7 Ultra outperformed the Tesla Model S Plaid in a drag race.
3. The SU7 Ultra is priced at approximately $72,800, significantly cheaper than the Model S Plaid at around $112,000.
4. The SU7 Ultra has a power output of 1,526 hp, surpassing the Model S Plaid’s 1,020 hp.
5. The SU7 Ultra accelerates from 0 to 100 km/h in 1.98 seconds, making it the quickest mass-produced four-door sedan.
Xiaomi has recently entered the electric vehicle market, yet it has already managed to sell over 20,000 cars each month. The excitement surrounding its automotive venture was highlighted when its vehicle outperformed one of Tesla’s top models in a recent performance test.
Performance Comparison
The Xiaomi SU7 was designed to rival the Tesla Model 3, but in an unexpected twist, the Ultra version of the SU7 outperformed the Model S Plaid in a drag race, all while being much more affordable. The SU7 Ultra is priced at approximately $72,800, whereas the Model S Plaid costs around $112,000 in China.
Race Highlights
In a brief video shared by Tesla Geek on YouTube, the SU7 initially appears to lag behind but quickly gains momentum, ultimately surpassing the pricier Tesla model.
Specifications Breakdown
To put things into perspective, the Tesla Model S Plaid boasts a powerful tri-motor AWD system that produces 1,020 hp, while the Xiaomi SU7 Ultra delivers a whopping 1,526 hp with a similar drivetrain setup. The Model S Plaid can accelerate from 0 to 60 mph in just 1.99 seconds, whereas the SU7 Ultra achieves a similar feat from 0 to 100 km/h in a mere 1.98 seconds. Xiaomi asserts that the SU7 Ultra is the quickest mass-produced four-door sedan, capable of hitting speeds of 350 km/h.
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Tags: electric vehicles, Tesla Model S Plaid, Xiaomi SU7
March 16, 2025
Xiaomi YU7 Leak: Tesla Model Y Outshined by Gold-Plated SU7 Ultra
Key Takeaways
1. The Xiaomi YU7 SUV boasts a range of up to 770 km, surpassing the Tesla Model Y’s range by 50 km.
2. The starting price of the YU7 is expected to be around $34,500, which is $2,000 less than the Model Y in China.
3. The YU7 will offer different variants, including options with and without LiDAR, and will feature a 96.3 kWh battery pack.
4. The design of the YU7 carries over elements from the SU7, with an innovative interior instrument panel featuring an offset ultrawide screen strip.
5. CEO Lei Jun’s popularity in China, likened to Elon Musk, may have contributed to the success of Xiaomi’s first EV, the SU7, despite some issues with the gold-plated badges.
After achieving success in the market with its initial electric vehicle, the SU7, Xiaomi is gearing up to launch the YU7 SUV, which appears poised to compete directly with the latest Tesla Model Y.
Impressive Range Certification
A leak from the Chinese regulatory body equivalent to the FCC has revealed the top range version of the Xiaomi YU7, which surpasses the Model Y Long Range. The MIIT has certified that the YU7 can travel up to 770 km (CLTC), exceeding the Model Y’s range by 50 km.
Competitive Pricing
Even with its larger battery and extended range, the Xiaomi YU7 is anticipated to have a starting price of around $34,500, which is $2,000 less than the starting price of the Model Y in China.
The YU7’s extended range is supported by a 96.3 kWh battery pack, while Xiaomi has also filed for a performance 01.7 kWh nickel battery, likely intended for the top-tier YU7 AWD model, which boasts an impressive 691 horsepower.
Different Variants and Technology
Xiaomi has also registered versions with and without LiDAR, indicating that the more affordable RWD models might utilize vision-based autonomous driving technology, similar to what Tesla employs. For these models, Xiaomi has also certified an LFP battery.
On the exterior, the YU7’s design elements carry over from the SU7, featuring yellow brake calipers and raindrop-style headlights. However, the interior will showcase a fresh approach to EV instrument panels. Xiaomi has registered an offset ultrawide screen strip aimed at making it easier to monitor essential driving information without being a distracting secondary screen.
Xiaomi’s Reputation and Leadership
Xiaomi, known for its quality value products like Bluetooth speakers and Redmi smartphones, has a vast range of offerings, including home electronics and electric scooters, and has recently ventured into the automotive sector.
CEO Lei Jun has garnered a significant fanbase, often being compared to Elon Musk in China. This popularity may be one reason why the first EV, the SU7 sedan, became an instant success. Recently, Lei Jun introduced the high-performance SU7 Ultra version, which is not only cheaper but also quicker than the Tesla Model S Plaid.
However, he may have erred in mentioning that the Xiaomi emblem on the SU7 Ultra is gold-plated, as early buyers of this premium performance EV have reported thefts of their badges.
While Lei Jun quickly urged potential thieves not to act on their impulses, stating, “it’s not worth breaking the law over that amount of gold,” incidents of SU7 Ultra badges appearing in classifieds began to surface.
Upon examination, the gold content of the SU7 Ultra badge was determined to be worth only about thirty dollars, yet this did not deter people from attempting to steal them.
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Tags: SU7 Ultra, Tesla Model Y, Xiaomi YU7
March 15, 2025
Model Y Juniper: Brake-by-Wire & Heat Pump Features Explained
Key Takeaways
1. Tesla’s updated Octovalve SuperManifold heat pump improves cooling capacity but will not be available in all Model Y units immediately.
2. The new “hydraulic-by-wire” braking system features dual master cylinders, enhancing braking efficiency and energy recovery during driving.
3. The brake-by-wire system allows for better control and energy recuperation, with a hydraulic backup for safety.
4. Tesla claims the new braking system and smaller brake calipers contribute to increased efficiency, with a 5% improvement in range per charge for the Model Y Juniper.
5. The braking system design is innovative, resembling Mercedes’ one-box brake system, which also optimizes energy recovery and maintains consistent brake feel.
Tesla has launched an updated version of its Octovalve SuperManifold heat pump as part of the new 2026 Model Y Juniper refresh, which is now being delivered to customers. However, not all vehicles will have this upgrade immediately.
Enhanced Cooling Capacity
Tesla’s lead engineer, Lars Moravy, shared that a new LCCR filter system has been added to boost the cooling ability of the heat pump. Also, the SuperManifold heat exchange unit has been enhanced to a more efficient v2 version.
Notably, the SuperManifold v2 will not be included in every new Model Y unit. Whether it is present in the first batches will depend primarily on the factory it ships from. Lars mentioned in a chat with Sandy Munro, known as the Teardown Titan, that it may take a year before all buyers of the Model Y Juniper can be sure they’re receiving all the heat pump enhancements.
New Braking System Features
In addition to the heat pump upgrades, Tesla has introduced a “hydraulic-by-wire” braking system in the Juniper refresh. This system now has one master cylinder controlled by the driver and another solely managed by Tesla’s self-driving computer.
This configuration allows the brake pedal to remain steady while using Autopilot or FSD, and enables more efficient energy recuperation, even when the driver is manually applying the brake, based on the amount of force used.
On one side, the brake-by-wire system, which employs electric motor actuators on the booster side, offers a more seamless braking experience and enhances energy recovery. However, Lars pointed out that the hydraulic motion can still function as a backup for added safety when necessary.
Efficiency Gains and Competitors
The electric motor actuation also provides Tesla the ability to retract the brake pads slightly further than would typically be possible with just hydraulic braking, which reduces friction and leads to further efficiency improvements.
Tesla claims that this hydraulic-by-wire system, along with the smaller brake calipers, is a significant factor in the Model Y Juniper’s enhanced efficiency. Lars noted that no other car manufacturer has implemented by-wire brakes with such a level of decoupling, but it closely resembles the one-box braking system that Mercedes unveiled with its new CLA electric sedan, which is priced to rival the Tesla Model 3.
The all-electric CLA boasts a new one-box brake system that integrates previously separate components, such as the brake booster and master brake cylinder, into a compact unit. This system optimizes energy recovery during braking, thereby extending range. The by-wire design ensures a consistent and clear brake pedal feel for the driver, regardless of whether the braking involves recuperation or traditional friction methods. Furthermore, the new system adheres to the brand’s rigorous safety standards, automatically switching to hydraulic backup in case of a malfunction, ensuring safe braking at all times.
Despite the introduction of the new brakes and other efficiency enhancements, the Model Y Juniper refresh offers around a 5% increase in range per charge compared to the same battery used in its predecessor.
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Tags: hydraulic-by-wire braking, Octovalve SuperManifold, Tesla Model Y
March 15, 2025
Tesla Sales Crisis: 94% of Germans Reject Elon Musk’s EVs
Key Takeaways
1. Declining Interest: A recent poll shows 94% of Germans would not choose to buy a Tesla, indicating a significant decrease in interest.
2. Sales Drop: Tesla’s sales in Germany fell by 41% in 2024, with a further decline of 70.6% in early 2025, while other EV brands saw a 27% increase.
3. Political Backlash: Elon Musk’s political activities, including ties to Germany’s far-right AFD party, are believed to negatively impact Tesla’s sales.
4. Increased Vandalism: There is a rise in vandalism against Tesla vehicles and Superchargers, possibly linked to Musk’s controversial public actions.
5. Market Competition: Tesla faces growing competition from brands like Volkswagen and Hyundai, as well as issues with the availability of the standard Model Y contributing to the sales downturn.
To say that Tesla’s popularity in Germany has decreased is probably an understatement. A recent poll of 100,000 Germans indicates that the last bit of interest in buying a Tesla electric vehicle appears to have faded away. This is surprising, especially since EVs are gaining more fans overall.
Survey Insights
The survey, conducted by T-Online, saw a record number of participants. Results show that a whopping 94% of those surveyed said they would not choose to buy a Tesla. Tesla’s sales have already dropped by about 41% in 2024, while sales of other EV brands have increased by around 27%.
Political Concerns
Many believe this decline is tied to Elon Musk’s recent political activities. Experts in the industry mention that Musk’s association with Germany’s far-right AFD party has negatively affected Tesla’s sales. This party garnered roughly 20% of the vote during the last election.
Moreover, Musk’s notable appearance at President Trump’s inauguration is unlikely to have won him fans in Germany. While one might assume that voters from this group could be potential Tesla buyers, the AFD has often criticized Tesla in the past. A specific example is the satirical advertisement that mocks a well-known German Christmas tune: “Advent, Advent a Tesla is burning.”
Current Sales Trends
In 2025, Tesla’s sales in Germany took another significant hit, plummeting by 70.6% just in the first two months compared to 2024. The decline isn’t limited to Germany, as sales across Europe also fell by 43.5% during the same period. The Tesla Model 3 and Model Y were particularly hard-hit, showing drops of 81.4% and 55.4%, respectively.
In addition, there has been an uptick in vandalism targeting Tesla vehicles and Superchargers, suggesting that the sales drop may stem from personal grievances related to Musk’s controversial public actions.
Market Competition
Some speculate that the current sales downturn could be because the standard version of the Model Y isn’t available, while the premium version was only recently introduced. Growing competition from brands like Volkswagen, Hyundai, Toyota, Honda, and BYD is likely to complicate matters further for Tesla. Whether the new facelift of the Model Y will turn things around remains uncertain. If you already own a Tesla and are feeling uneasy about your choice, you might consider using a sticker that says, “I bought this before Elon went crazy.”
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Tags: Germany, Model Y, Tesla
March 14, 2025
Tesla Rebounds in Norway and Sweden with New Model Y Launch
Key Takeaways
1. Tesla’s Model Y has seen a strong sales rebound in Norway with 485 registrations in March, up from 283 in February.
2. The Model 3 also improved in Norway, with 267 units registered in March compared to 129 in February.
3. In Sweden, the Model Y is performing well, with 318 registrations so far in March, potentially surpassing February’s total of 479.
4. The Model 3’s sales in Sweden have declined, with only 60 units registered in March.
5. The early data indicates a positive trend for Tesla in the Nordic market, signaling a recovery from previous sales declines in Europe.
Tesla might be on the verge of a sales rebound in at least two Nordic nations this March, mainly due to the newly launched Model Y. Early vehicle registration data suggests that the electric SUV has reclaimed the top position in Norway, potentially marking a recovery from the company’s decline in deliveries throughout Europe.
Norwegian Market Performance
The Norwegian Electric Vehicle Statistics report that the Model Y has achieved 485 registrations in March, a significant increase from the 283 units recorded in February. The Model 3 follows in second place with 267 units registered, which is an uptick from the 129 units registered the previous month.
Success in Sweden
In Sweden, the Model Y is also seeing success, climbing to the third position. So far in March, buyers have registered 318 units, indicating it might surpass February’s total of 479. Sales have already outpaced January’s total of 299, as per data from CarUp. In contrast, the Model 3’s performance has dipped, with only 60 units registered.
Outlook for March
With March still ongoing, the data only provides a partial view. Nevertheless, a resurgence in Norway, known as the EV capital of the world, certainly offers a boost for Tesla after the unfavorable news surrounding global sales declines in February. The situation appears to be improving for the company, which is a positive sign moving forward.
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Tags: Model Y, Norway, Tesla
March 14, 2025
Canada’s EV Rebate Program Does Not Cover Tesla Chargers
Key Takeaways
1. B.C. Hydro has removed Tesla EV chargers from its rebate program to support locally manufactured products.
2. Residents can still receive a subsidy of up to $350 for Level 2 EV chargers, but Tesla products purchased after March 12, 2025, will not qualify.
3. Other U.S. EV products remain eligible for the rebate, while only four Canadian brands are included.
4. British Columbia offers a $4,000 rebate for new electric vehicles under the Clean BC Go Electric program, but Tesla vehicles’ eligibility is uncertain.
5. Ongoing trade tariff conflicts between the U.S. and Canada complicate the situation for companies like Tesla.
Tesla EV charger purchasers in British Columbia will no longer receive benefits from B.C. Hydro’s EV rebate program, as it has removed products from the American manufacturer. The energy company, which is connected to the government, states that its goal is to support locally manufactured solutions and “exclude, where practicable, U.S.-produced goods.”
Rebate Details
Residents in British Columbia can receive a subsidy of up to $350 or half of the costs for Level 2 EV chargers. Other Tesla items impacted by this decision include energy storage systems like the Powerwall and inverters. However, any Tesla products bought prior to March 12, 2025, will still qualify for the rebate.
Remaining Options
At the same time, EV products from other U.S. companies are still included in the rebate program, but the list features only four Canadian brands.
British Columbia provides a $4,000 rebate for new electric vehicles through the Clean BC Go Electric program. It is uncertain if Tesla electric vehicles will be excluded from this financial aid. Currently, the U.S. and Canada are engaged in trade tariff conflicts started by the U.S., putting major companies like Tesla in a challenging position.
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Tags: B.C. Hydro, EV rebates, Tesla
March 14, 2025
Affordable Tesla Model Y E41 Launching Soon in the US
Key Takeaways
1. The new, more affordable Model Y refresh, internally called E41, is set for release in 2026 and will be smaller than the current Model Y with a 20% reduction in manufacturing costs.
2. The E41 model will maintain battery capacity and drivetrain performance but will feature a simpler interior, similar to the budget-friendly RWD Model 3 in Mexico.
3. Production is planned for North America and Europe, with potential sightings of a prototype indicating a miniaturized version of the Model Y.
4. Tesla is developing the E41 as a response to increasing competition in the EV market, particularly from cheaper models offered by brands like BYD and NIO in China.
5. The expected starting price for the E41 could be under $30,000, making it a strong competitor against emerging EV brands in the market.
The upcoming, more affordable Model Y refresh that Tesla is planning to release in late 2025 has now been updated with additional details, although the launch has been postponed to 2026.
Production Insights
Sources from within Tesla’s supply chain indicate that this new model will be smaller than the latest Model Y facelift and will see a 20% reduction in manufacturing costs at the Shanghai Gigafactory, which will be the first to receive orders.
Internally referred to as E41, this smaller, budget-friendly Model Y project has moved away from nicknames like “Juniper” or “Highland,” opting instead for a simpler coding system of numbers and letters, similar to the NV9X project that led to the creation of the Cybercab two-seater.
Specifications and Features
Earlier rumors suggested that the E41 would not compromise on battery capacity or drivetrain performance, implying that the affordability will come from a reduced size and a more basic interior. This approach mirrors Tesla’s strategy with the RWD Model 3 in Mexico, which comes with standard cloth seats that lack heating or ventilation, along with some other comfort features being omitted.
The smallest and most affordable Model Y version is expected to be manufactured in North America and Europe as well. This could clarify the sighting of a camouflaged prototype during a recent drone flight over Giga Texas, which appeared to be a miniaturized Model Y, creating some confusion about the yet-to-be-released Model 2. This model, which Elon Musk and Lars Moravy hinted would arrive later this year, is also anticipated to resemble a scaled-down Model Y rather than a typical hatchback.
Future Predictions
When Elon Musk hinted during a quarterly call that the upcoming cheapest Tesla Model 2 would be “smaller, to be certain,” he likely meant smaller than the Model 3. However, with Tesla now focusing on the E41 Model Y, all previous predictions about design may be irrelevant.
Alternatively, it’s possible that the Model 2 could be an even more compact version of the Model Y compared to the E41, featuring a smaller battery which could help Tesla achieve the competitive price range of $20,000-$25,000, especially with potential subsidies. Tesla’s lead engineer, Lars Moravy, mentioned, “the most difficult part of doing that is not making the cars worse, so I promise that they won’t be a massive step-down from the cars we sell today.”
In any event, Tesla is primarily developing the smaller, more affordable Model Y as a strategic move against the increasing competition in the EV market in China, where brands like BYD, NIO, and even Xiaomi are emerging with strong competitors that are cheaper and offer more than the latest Model Y.
This context sheds light on the tentative release date of 2026, as Tesla could likely rely on the demand for the Model Y Juniper refresh for a few quarters, driven by early adopters and customers looking to upgrade their older Model Y vehicles.
Currently, Tesla is only selling the $60,000 Launch Series Juniper edition in the U.S., with only older inventory units of the previous Model Y available. The company has yet to release the new Model Y in RWD and AWD configurations that are not bundled with FSD, making it too soon to determine the price for the smaller Model Y E41 when it potentially debuts in the U.S.
In China, the starting price for the refreshed Model Y is approximately $36,300. Given Tesla’s profit margins, a 20% reduction in manufacturing costs could mean that the E41 project launches at well under $30,000, positioning it as a strong competitor against BYD, NIO, or Xiaomi’s offerings in that market.
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Tags: E41, Model 2, Tesla Model Y