SAN FRANCISCO: Tesla’s long-awaited plans for an affordable car include a US-made, stripped-down version of its best-selling electric sport utility vehicle, the Model Y, but the production launch has been delayed, sources tell Reuters.
Tesla has promised affordable vehicles beginning in the first half of the year, providing a potential boost to flagging sales.
Global production of the lower-cost Model Y, internally codenamed E41, is expected to begin in the United States, the sources said.
That would occur at least a few months later than outlined in Tesla’s public plan, they added, offering a range of revised targets from the third quarter to early next year.The reason for the delay was not clear.
Two of the people said Tesla aimed to produce 250,000 of the cheaper Model Ys in the United States next year.
The new vehicle is also planned for eventual production in China and Europe, Reuters previously reported.
The delay of US production and the US production target have not been previously reported. Tesla reports results tomorrow, and plans for the new vehicles are a major question.
The less expensive mass-market vehicles have been widely anticipated by Tesla fans and investors who hope they will attract a fresh group of customers and reverse the electric vehicle maker’s falling sales and eroding market share.
Tesla also has refreshed its original Model Y with exterior and interior changes. The Long Range All-Wheel Drive version in the United States costs about US$49,000, before a US$7,500 federal tax credit. — Reuters
