Tesla Delays US Launch of Affordable Model Y

Published 11 days agoTSLA

Tesla Delays US Launch of Affordable Model Y

Tesla is pushing back the United States launch of its less expensive Model Y version. This scaled-down iteration is crafted to be more budget-friendly than the current Model Y lineup but has reportedly been delayed as the company navigates production and demand challenges.

According to sources, the vehicle is poised to be manufactured in Tesla's Shanghai Gigafactory starting in the second half of 2025, focusing initially on the Chinese market. The US and European launches will follow, yet no US launch date has been specified, signaling a strategic delay. Currently, Tesla's foray into producing the cheaper model at its Texas Gigafactory has not transitioned to open orders in North America, underscoring a delay in availability stateside, as noted by Insider Monkey.

This delay links to Tesla's strategy to optimize their production line use in the US and adjust to the fluctuating demand, especially since the pricey refreshed Model Y Launch Edition has underperformed in terms of sales expectations. As production costs aim to be at least 20% lower than the current Model Y, the delay in launching this model in the US is also reflective of Tesla's broader market considerations, including managing existing inventory and countering local competition in international markets.

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