Tesla postpones affordable electric car release again
By ForGeeks Tesla’s promises to release a budget electric car have once again turned into a postponement. The company has postponed the release of the low-cost model that millions have been waiting for, focusing on autonomous driving projects.
Tesla has postponed the release of the low-cost model that millions have been waiting for, focusing on autonomous driving projects.
In place of its long-announced lineup of affordable electric cars, Tesla is shifting its focus again. According to Reuters, citing three knowledgeable sources, the company has postponed the launch of an entry-level model previously expected in the first half of 2025. Now its release may not come until late 2025 or even 2026. Despite Ilon Musk’s loud claims of a “car for everyone”, the budget electric car remains just a project on paper.
Tesla delayed «people’s electric car» for robotaxi
Internally, the upcoming electric car is known by the codename E41. In the media it was unofficially called Model A, Model 2 or Model Q. The new car was supposed to be a compact and simplified version of the Model Y, built on a platform that has already paid for itself, which would significantly reduce production costs. That approach could open the door to Tesla’s world to a wider audience, giving the company a chance to strengthen its position in an increasingly competitive market.
Sources say, however, that the project has been put on the back burner once again. Priority is now given to developing unmanned cars and expanding autopilot capabilities. This reallocation of resources has become the company’s usual tactic: high-profile announcements are replaced by delays, but the hope of “coming soon” persists.
Why Tesla is in no hurry to release a low-cost model
The reasons for the delay are understandable: Tesla is going through one of the most volatile periods in its history. Interest in the brand is waning, sales figures are falling even despite rebates and incentives, and the value of used models is falling at a record pace. Exchanges of old Tesla’s for other cars are on the rise, and new purchases are slowing.
Sales of used Tesla models are falling even as rebates and incentives are falling at a record pace.
The only groundbreaking product in recent years, the Cybertruck pickup truck, has been a commercial failure. It failed to live up to expectations, despite extensive advertising campaigns. In such circumstances, launching an affordable model that requires large-scale production and serious investment would be a risky move for Tesla.
