This year hasn’t been kind to Tesla. Falling sales, political turmoil, tariffs, overseas competition, and a miserable brand image have all but haunted the electric car marque’s bottom line. To make things worse for eccentric CEO Elon Musk, his plans to focus on self-driving vehicles like the Robotaxi might have to wait. Instead, Tesla will roll out more affordable, drivable vehicles. However, even the cheaper EVs are on a bit of a delay. 

Despite his intent to focus on self-driving cars, CEO Elon Musk and Tesla will build cheaper vehicles with driver controls

When Elon Musk unveiled the Robotaxi, he laid out his plans for the brand. Rather than focusing on a cheaper Tesla vehicle to undercut the Model 3 and Model Y, he saw the “unboxed” platform ferrying urban passengers in little “Cybercabs” without driver controls. Fully autonomous runabouts. 

But Tesla executives don’t feel the same way. Instead of Musk’s vision for city streets dotted with self-driving cars and buses, the execs urged the powers that be at Tesla that a more affordable model, like the once-rumored “Model 2,” would be the better bet. And now, it looks like they might get their wish.

For starters, sources within Tesla suggested that the “Project E41” would be the budget-friendly, fewer-frills vehicle that investors, executives, and would-be car buyers have been awaiting. More specifically, the E41 will be a version of the Model Y, with a 20% reduction in production costs as a target.

The cheaper Model Y isn’t alone. Rumors suggest a similarly spartan variant of the Model 3, Tesla’s current most affordable EV, is in the works. That model will almost certainly be a version of the existing single-motor, RWD Model 3. However, it’s unclear how close the Model 3 will get to the stillborn Model 2’s proposed $25,000 price point. 

The cheaper EVs are coming, but there’s a delay

According to Reuters, the more affordable version of the Model Y has hit a snag, pushing its development and eventual release back “several months.” Originally, Tesla planned to produce 250,000 units of stripped-down, bare-bones electric vehicles in 2026. However, the unknown delay means car buyers will have to wait longer to get their hands on the E41. 

It’s not just the more affordable Model Y, though. Burgeoning tariff structures have put something of a damper on the upcoming Robotaxi and Semi projects. Musk unveiled the self-driving, steering wheel-free Robotaxi at an event late last year. However, triple-digit tariffs have made getting the Chinese components vital for the vehicles nearly impossible.