Tag: Model 2

  • 30% Cheaper Model Y: 55 kWh Battery & Cloth Seats Leaked

    30% Cheaper Model Y: 55 kWh Battery & Cloth Seats Leaked

    Key Takeaways

    1. Tesla plans to introduce more affordable models, including a budget-friendly version of the Model Y, with a design similar to the Model Y and Model 3 but not identical.

    2. The new Model Y, referred to as project E80, is expected to be priced between $20,600 and $26,000, representing a 30% decrease compared to the current Model Y’s pricing.

    3. To reduce manufacturing costs, Tesla will utilize existing production lines and modify the design of the Model 2, which is now on hold due to other projects.

    4. The budget Model Y will feature a smaller battery (50-55 kWh) and fewer comfort features, such as cloth seats and reduced audio systems, to keep costs low.

    5. Despite the lower price point, the basic specifications like range and acceleration are anticipated to remain similar to those of the current Model Y.

    According to the Chief Financial Officer of Tesla and lead engineer Lars Moravy, the company is set to unveil more affordable models that will share a “similar shape and form” to its best-selling electric cars, the Model Y and Model 3, soon.

    New Design Insights

    However, similar does not mean identical. Recent leaks have revealed the framework and specifications for the more budget-friendly Model Y. A drone flying over Tesla’s Fremont factory has captured images of several body frames resembling the Model Y SUV, although the roof appears to be smaller than that of the popular crossover. Additionally, there is a frame that seems to feature falcon wing doors, hinting at a potential facelift for the Model X.

    Another recent sighting shows a disguised vehicle being towed, maintaining the crossover silhouette but with a more sloped rear, similar to what was previously seen at Giga Texas.

    Project E80 Unveiled

    This aligns with Tesla’s plans for the Model 2, its most affordable car, which was said to look like a smaller version of the Model Y. With Tesla’s sales declining and the Model 2 project being put on hold for the launch of the Cybercab, it seems that the design for Model 2 has been modified to fit the existing production lines.

    Lars Moravy mentioned that this approach is aimed at reducing manufacturing expenses to offer the lowest monthly payments for buyers. Instead of creating an entirely new design that would necessitate major retooling or new production lines, Tesla is focusing on leveraging its current setups.

    Pricing and Specifications

    As the first body frames for the smaller, more affordable Model Y may be taking shape, its specs and pricing have begun to surface from China. Known as project E80, the new compact Model Y could be priced between $20,600 and $26,000, depending on the sources from Tesla’s Shanghai Gigafactory. This pricing is more competitive compared to rivals in the crossover market and represents at least a 30% decrease from the Model Y Juniper facelift in China.

    Interestingly, a few weeks ago, rumors surfaced about a budget Tesla vehicle codenamed E41, indicating that the US might see an entry-level Model 3. During the quarterly earnings call, Tesla’s CFO confirmed that the company’s research and development efforts are concentrated on “cheaper models.”

    Features and Specifications

    To achieve this lower price point for the Model Y, besides downsizing the vehicle, insiders suggest that a more basic version will be released. Initially, the battery will be in the range of 50-55 kWh, which should help in lowering production costs significantly. Despite the smaller battery, the range is expected to remain relatively unchanged due to the lighter weight and smaller wheels.

    Many design and comfort features typically found in Tesla vehicles will be absent. Following the trend set by the RWD Cybertruck and Model 3, the cheaper Model Y will likely come with cloth seats that are neither heated nor ventilated. Additional features such as a rear screen, dual-layer acoustic glass, and multicolor ambient lighting will also be removed, and the number of speakers will drop from 15 to seven.

    The automatic trunk gate and panoramic glass roof will also be eliminated, yet there’s no confirmation regarding the distinctive exterior light bars that characterize the new Model Y design. The RWD Cybertruck does not include light bars, indicating that the cheaper Model Y may follow suit if Tesla aims to keep costs low.

    Conclusion

    In essence, the more affordable Model Y will be a “smaller, to be sure” version of the current Juniper refresh, as Elon Musk commented on the Model 2 a few quarters ago, and it will be a basic model in terms of comforts and design features.

    Basic specifications like range and acceleration are not expected to differ much, while the price is projected to be around 30% lower, which would place it in the desirable $25,000 to $30,000 range in the US after accounting for federal tax credits.

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    30% Cheaper Model Y: 55 kWh Battery & Cloth Seats Leaked30% Cheaper Model Y: 55 kWh Battery & Cloth Seats Leaked30% Cheaper Model Y: 55 kWh Battery & Cloth Seats Leaked30% Cheaper Model Y: 55 kWh Battery & Cloth Seats Leaked
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  • Affordable Tesla Model Y E41 Launching Soon in the US

    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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  • Elon Musk Aims to Double US Production with Affordable Tesla Launch

    Elon Musk Aims to Double US Production with Affordable Tesla Launch

    Key Takeaways

    1. Tesla plans to double US production from about 665,000 vehicles last year to over 1.3 million by 2027.
    2. The company currently has the capacity to produce around 1.1 million vehicles annually in the US, needing slight expansion for its new goals.
    3. A more affordable vehicle, tentatively called Model 2, is set to be revealed soon, potentially boosting demand.
    4. Tesla is enhancing production of the Model Y Juniper refresh and plans facelifts for the Model S and Model X by late 2025.
    5. Despite challenges like declining global sales and vandalism, Musk is committed to fulfilling his production goals with upcoming models like the Cybercab.

    Tesla is set to increase its production at its US factories by two times over the next two years, according to Elon Musk. This move aligns with the current administration’s push for more goods to be made in America.

    Production Goals

    This shift means Tesla aims to ramp up its output from around 665,000 vehicles produced in the US last year to over 1.3 million by 2027. Considering Tesla manufactured approximately 1.8 million cars worldwide in 2024, this target for US production alone appears quite ambitious.

    Capacity and Demand

    At present, Tesla has the capability to produce about 1.1 million vehicles annually in the US, meaning it just needs to slightly expand that capacity. The more challenging aspect will be securing enough American customers for the increased output, a strategy Musk appears to have carefully considered.

    New Models on the Horizon

    Later this year, Tesla is expected to reveal its most affordable vehicle, tentatively referred to as the Model 2. Elon believes that its lower price could quickly make it a popular choice among buyers. Additionally, the company is gearing up to enhance production of the new Model Y Juniper refresh, which many enthusiasts are eagerly awaiting before making their Tesla purchases.

    The Model S and Model X are also set to receive facelifts by late 2025, and Tesla plans to launch a more affordable rear-wheel drive version of the Cybertruck this year, with this model already listed in the IRS tax credit database.

    Future Production Plans

    The Cybercab, which will use the same production platform as the Model 2, is also scheduled for mass production in 2026. Thus, fulfilling Musk’s commitment to double US production seems achievable, a promise made during an event at the White House.

    Despite facing difficulties like a dip in global sales and vandalism issues domestically, Elon Musk organized a promotional event at the White House, where he showcased a price list to President Trump and suggested he buy a red Model S Plaid.

    Trump expressed his support for Tesla amid the backlash related to Musk’s political activities, which have impacted sales and led to vandalism against Tesla’s Supercharger stations and showrooms. As a gesture of this support, he allowed Musk to bring all Tesla models to the White House and confirmed he would buy a Model S Plaid, which Musk mentioned is his daily driver.

    Elon committed to doubling the production of American-made vehicles to around 1.3 million within the next two years, a plan that shouldn’t significantly strain Tesla’s existing budget, as it aligns with prior goals set before the White House endorsement event.

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    Elon Musk Aims to Double US Production with Affordable Tesla Launch
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