Image: Tesla
Tesla’s long-rumoured cheaper Model Y is taking shape, with new details about the stripped-down crossover surfacing in the company’s latest vehicle firmware.
The findings come from Tesla hacker @greentheonly, a well-known software sleuth who has uncovered numerous features ahead of release. According to the code, the new budget-friendly Model Y — codenamed E41 — will sacrifice a host of features in order to hit a lower price point.
Among the changes are two pared-back audio options labeled “essential” and “essential with commodity,” a rear camera without a heater, and the removal of Tesla’s “air wave” ventilation controls in the center console. The E41 is also expected to ship with a simplified fiberglass headliner, reduced cabin lighting limited to footwells, single-axis seat controls, and no power-folding mirrors. Other omissions include puddle lamps, the glass roof, the second-row display, and even a Tire Pressure Monitoring System.
On the exterior, the new Model Y will feature a fresh fascia design and simplified 18-inch wheels, while underneath it will come with a downgraded suspension. RWD and AWD trims are expected, though no Performance variant has been spotted in the code so far.
Footage of what appears to be an early production unit of Tesla’s low-cost Model Y, shared by @ChrisDungeon in July, shows it to be smaller than the standard Model Y.
This stripped-down Model Y has been a long time coming. Tesla has been teasing “more affordable models” for years, with CEO Elon Musk confirming earlier this summer that the project was not an entirely new car, but rather a cheaper Model Y variant. During Tesla’s Q2 earnings call in July, Musk revealed that production of the new vehicle had technically started, though full ramp-up won’t begin until Q4 2025. That timing could be strategic, with the U.S. government’s $7,500 EV tax credit set to expire on September 30.
The E41 is shaping up to be Tesla’s most affordable vehicle in North America yet, aimed at expanding the company’s reach as competition heats up in the entry-level EV market. Stay tuned for more details on Tesla’s upcoming, cheaper Model Y as we learn more ahead of its official launch.
