Key Takeaways
1. The most affordable Model Y is now in production and will launch after the federal EV tax credit ends on September 30.
2. The cheaper Model Y may have a shorter wheelbase and lack several features compared to existing models, such as a panoramic glass roof and powered mirror folding.
3. Concerns have been raised about the suitability of the Model Y S for colder regions due to omitted features like rear camera heating and tire pressure sensors.
4. The basic Model Y trim may target markets like Mexico, following Tesla’s pattern of simplified trims in other regions.
5. The starting price for the least expensive Model Y is expected to be at least $35,000, following the removal of the federal tax credit.
The least expensive Model Y so far is now in production in the United States and is set to be launched after the federal EV tax credit ends on September 30, as stated by Tesla’s chief engineer, Lars Moravy.
Insights from Firmware Codes
Numerous firmware code references related to Tesla’s E41 project suggest that the release of the most affordable Model Y is approaching. However, it appears that potential buyers may have to sacrifice some specifications and design features for the lower price point.
Design Changes Expected
Reports indicate that the cheaper Model Y may feature a slightly shorter wheelbase compared to the existing version, resembling a Model Y S, similar to how Tesla introduced a larger and pricier Model Y L earlier this year. There are mentions of both a RWD Model Y S, which is expected to be the least expensive Model Y ever, and an AWD variant.
Features That May Be Cut
As previously speculated about the E41 project, this new Model Y might not include a panoramic glass roof, light bar, rear seat display, or even clothing hooks inside. The code suggests it might also lack powered mirror folding, while the powered seats will only adjust back and forth, potentially compromising some of its current suspension specifications.
Concerns About Market Suitability
While these omissions in the Model Y S are anticipated based on Tesla’s past approaches with simplified trims, such as the Model 3 for Mexico with basic cloth seats, two particular feature cuts raise questions about where the E41 model will be sold. The absence of rear camera heating implies that the Model Y S might not be suitable for colder regions like Canada, and the lack of tire pressure sensors is concerning. In the U.S., a TPMS system has been mandatory for new vehicles, although some have evaded that requirement using ABS system sensors. It’s unclear how much Tesla would save by eliminating these options, especially since a set of Model Y TPMS sensors is available for under $100 on Amazon.
Potential Market Implications
The absence of these features could mean that this basic Model Y trim is aimed at other markets like Mexico. Regardless, the deadline on September 30 is approaching, and Tesla is expected to unveil the specs and pricing for the most affordable Model Y soon after.
Pricing Expectations
Previously, the rumored price for the cheapest Model Y was around $30,000 after applying the federal tax credit. However, since the government has removed this subsidy, even if Tesla adjusts its pricing after cutting some specs and features, the starting price for the least expensive Model Y is likely to be at least $35,000.
Final Thoughts
Whether the upcoming base Model Y will be worth this price, considering features like cloth seats, the absence of a rear display or lighting extras, and a downgraded suspension, is yet to be determined.
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