It’s another Friday, so it’s time for another affordable Tesla rumor. The automaker is now expected to roll out a less expensive EV as soon as later this year, taking the form of a smaller Model Y.
The EV is reportedly codenamed E41 and will use Tesla’s existing production infrastructure. Some expected it to be a stripped-down version of the Model Y, but it’s said to be smaller and significantly cheaper to manufacture than the popular crossover, costing up to 20 percent less to build.
While part of the cost savings will likely come from the vehicle’s lower-level equipment, Tesla will realize other savings by using existing parts and technologies. The company will utilize parts of its new EV platform supplemented with existing components, which drastically reduces the lead time and expenses involved with designing a new vehicle model.
Tesla will begin producing the new vehicle next year in China, and it will eventually roll off production lines in the U.S. and Europe. The new E41 EV could help Tesla better compete against waves of affordable Chinese EVs, but bigger challenges remain.
The automaker’s sales have tumbled in markets around the world, recording an almost 10-percent drop in U.S. market share last year. Buyers in Europe and elsewhere have turned away from the brand as CEO Elon Musk digs deeper into American politics, and there have been multiple reports of vandalism against Tesla owners.
[Images: Tesla]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
