Tesla is reportedly delaying the launch of a new affordable electric vehicle as the Elon Musk-led brand prepares to announce its financial results later today.
Three sources with close knowledge of the development of a cheaper EV spoke with Reuters about the plans for the future of a stripped-down version of Tesla's best-selling Model Y.
Tesla founder and CEO Elon Musk has consistently promised the release of a low-cost electric vehicle, which was planned to be produced in the United States.
However, sources suggest that these plans have now been shelved for the time being, although a reason for the decision is unclear.
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Tesla is reportedly delaying the production of a cheaper Model Y electric car
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Reuters reported that two insiders suggested that Tesla wanted to produce 250,000 cheaper Model Ys in 2026, before expanding production to China and its European Gigafactory in Berlin.
At present, the cheapest Tesla electric vehicle available in the UK is the Model 3, which costs just under £40,000.
Drivers can also order an upgraded Model Y from £44,990, with UK deliveries set to begin in June. Many analysts are predicting that the refresh of its line-up could boost Tesla sales.
Drivers and industry experts have criticised Tesla in recent years for a stagnating fleet of vehicles, despite constant improvements to in-car technology.
The new Model Y will launch in June across the UK TESLAAside from an upgraded exterior, flush with Cybertruck-inspired headlights, the new Model Y has an improved battery electric range and better aerodynamics.
It comes as Tesla prepares to release its results this evening, which could have a huge impact on the brand's intentions over the coming months.
In the first quarter of 2025, Tesla produced over 362,000 cars and delivered more than 336,000 electric vehicles, with the vast majority of these including the Model 3 and Model Y.
Tesla noted that it lost several weeks of production in Q1 because of the changeover of Model Y lines across all four of its factories. Despite this, production of the New Model Y "continues to go well".
Tesla has been rocked by boycotts and worldwide protests in response to CEO Elon Musk's alignment with right-wing political groups, like the Reform UK, the Republicans in the US and the AfD in Germany.
Particular anger has come from the United States regarding his work with the Department of Government Efficiency (DOGE), which has made sweeping cuts to jobs and contracts across several key departments within the Trump administration.
Protests have taken place outside of Tesla dealerships and showrooms across the United States, with campaigners targeting the 53-year-old businessman in particular.
As part of the "Tesla Takedown" movement, protests have taken place in a number of British cities including London, Manchester, Leeds, Winchester, Nottingham, Bristol, Edinburgh, Glasgow and Exeter.
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A wave of anti-Tesla protests have taken place around the world in recent months
REUTERSThe UK chapter of Tesla Takedown calls on drivers to deter their friends and family from buying a Tesla, alongside selling any stock they have in the electric vehicle brand.
Elon Musk has remained largely silent on peaceful protesters, but has blamed certain people for causing damage to dealerships, as well as making threats against his life.
