
Tesla Pushes Back Launch of Affordable Model Y to 2026 Amid EV ... - CNET
- by CNET
- Apr 19, 2025
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Read more: EV Sales Increased by More Than 10% in the US Despite Tesla Sales Dropping
Tesla has floated a $25,000 EV for years, but focus has increasingly shifted toward its long-promised robotaxi platform. Though CEO Elon Musk hasn't officially scrapped the low-cost model, Tesla's priorities appear to have changed as the company looks to maintain its edge in an increasingly competitive EV market, especially as Chinese brands push out cheaper, feature-packed alternatives.
Tesla is also navigating a rougher policy landscape. Even with Musk's ties to the current Trump administration, the company has had to shift its supply chain strategy in response to a 25% tariff Trump placed on imported vehicles and auto parts. That's putting extra pressure on Tesla to localize production and keep costs down, especially for a car meant to be affordable.
With delays stacking up and the affordable EV space getting more crowded by the day, Tesla's window to stay ahead might be narrowing. Whether it can deliver the right products at the right price, before the competition does, is the big question.
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