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Affordable Tesla Model Y Set for Debut: Key Features and Changes

Tesla is set to introduce a more affordable variant of its popular electric SUV, the Model Y. Dubbed as the "E41," this new model aims to reduce production costs by about 20% and target a lower price point around $47,000 AUD (~£40,000) [1][3]. Here's what you can expect from the affordable Model Y.

Exterior Changes

The affordable Model Y will feature a more conventional design compared to the standard version. Tesla's signature front and rear light bars will be replaced by conventional headlights [3][5]. The panoramic glass roof, a distinctive feature of the current Model Y, is likely to be replaced with a standard metal roof [3].

The exterior design also includes modifications such as a slightly smaller body and shorter wheelbase, trimmed by nearly 6 inches to reduce size and weight [1][5]. The new model's taillight design is expected to lose its central reflective light strip, and headlights have been repositioned higher [1].

The exterior design of the affordable Model Y is more reminiscent of the Model 3 [1].

Interior Adjustments

The affordable Model Y will see a shift from vegan leather seats to textile fabric ones [3]. Comfort features like ventilated seats, heated seats, and heated steering wheel will be omitted [3]. The basic white ambient lighting replaces the customizable RGB lighting found in the standard Model Y [3].

The rear passenger touchscreen and the rear entertainment display will also be removed [3]. The audio system will be downsized from 15+1 speakers to 10+1 speakers [3].

Maintained Features

Despite the cost-cutting measures, the affordable Model Y will retain essential safety, performance, and software functionalities. Core Tesla technologies like Autopilot cameras, bumper camera, and turn signal stalks remain unchanged [3]. The compatibility with Tesla Supercharger network is preserved [3]. The central infotainment touchscreen and Tesla software ecosystem continue to be included [3].

Battery and Range

The affordable Model Y will feature a smaller battery pack with lower capacity and range, enabling cost savings [5].

Competitive Market

In the second half of the year, XPeng, Li Auto, and Nio (Onvo) will all release highly competitive models in the same price range as the affordable Model Y [2].

The affordable Model Y is a strategic move by Tesla to broaden its market by making the Model Y more accessible without compromising electric driving core benefits [1][2]. The model is expected to be released in the second half of 2025 for US production, with a possible China launch in 2026 [1].

Sources:

[1] Electrek - Tesla's budget Model Y variant, codenamed "E41," will target a lower price point around $47,000 AUD

[2] Tesmanian - Tesla's Budget Model Y: A New Affordable Electric SUV?

[3] InsideEVs - Tesla's Budget Model Y: What We Know So Far

[4] CarSales - Tesla Model Y: What to Expect from the Affordable Variant

[5] Green Car Reports - Tesla's budget Model Y: How it could look and what it might cost

  1. The affordable Model Y, named the "E41," is a strategic business move by Tesla to enter the personal-finance friendly segment of the automotive industry, aiming to compete with upcoming electric-vehicles from XPeng, Li Auto, and Nio (Onvo) in the same price range.
  2. The exterior design of the affordable Model Y is shift from Tesla's signature features towards a more conventional look, resembling the Model 3 and featuring modifications like conventional headlights, a metal roof, and a smaller body.
  3. The interior of the affordable Model Y will see cost-cutting measures, such as the replacement of vegan leather seats with textile fabric, removal of optional comfort features, and a downsized audio system, all in the name of personal-finance savings.
  4. Despite these changes, the affordable Model Y will maintain core safety, performance, and software functionalities, ensuring the preservation of the electric-vehicles' core benefits.
  5. This new model, set to debut in the second half of 2025 for US production, is expected to revolutionize the lifestyle industry by making electric-vehicles more accessible, integrating technology advancements such as Autopilot and Tesla Supercharger network compatibility. However, it may also face significant competition from other gadget-laden electric-vehicles in the market.

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