Tesla still procrastinating on the inexpensive car

Once praised for its responsiveness and daring choices, Tesla now seems to be sinking into a form of inertia. It’s time to get back on track!

Tesla once again appears to be caught in its indecision with the latest delay of its “affordable model,” presented this time as a streamlined version of the Model Y. We are talking about a strategy that, through constant changes of direction, is losing all its momentum. What was once seen as visionary flexibility now looks like tiresome indecision.

Back in 2022: Elon Musk canceled plans for a $25,000 Tesla, opting instead to focus on a fleet of revolutionary robotaxis. The idea was to reduce costs by exploiting full autonomy, making an entry-level vehicle unnecessary. But despite repeated predictions since 2019, autonomous driving remains just a mirage. Meanwhile, Tesla’s sales are eroding, forcing the company to slow production across all its lines.

What is the strategy?

Today, the promised “affordable model” for mid-2025 is delayed, according to Reuters. Internally dubbed “E41,” this stripped-down Model Y was supposed to boost sales by utilizing existing production lines in Fremont and Texas. However, sources mention a postponement to the end of the year, or even early 2026. The strategy involves cutting costs by simplifying finishes and removing options such as ambient lighting or vegan leather, standardizing parts to save money.

Behind this retreat, one can see a kind of victory for critics who accused Tesla of sacrificing its premium brand image. They have a point, as simplified models risk cannibalizing sales of standard versions, while further squeezing already fragile margins. Low-cost vehicles similar to the regular lineup could tarnish owners’ perception of the brand.

By promising revolutions that never arrive, Tesla seems stuck in a cycle of hype and delays. As competitors advance, the excuse of visionary innovation is losing its breath. The “affordable model,” instead of invigorating the company, may become yet another chapter of unmet expectations.

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