Tesla's "affordable" Model Y sacrifices key features for a lower price

Tesla appears ready to launch its most budget-friendly vehicle yet, but it's not the all-new, inexpensive model many were anticipating. Instead, new details reveal the automaker is preparing a heavily stripped-down version of its popular Model Y. Codenamed E41, this new variant cuts a surprising number of features, from the glass roof to basic safety systems, in a bid to lower the entry price for one of the world's best-selling electric cars.

Tesla and CEO Elon Musk have hinted at "more affordable models" for a while now, leading to widespread speculation about a new car built from the ground up to cost around $25,000. That project was ultimately canceled.

Simplified model Y "E41" that was sighted live now appears in the firmware too.
They will have two audio options: "essential" and "essential with commodity"
Backup camera would lose a heater
no "airwave" in console
E41 fascia (performance will also get a fascia update)

— green (@greentheonly) September 20, 2025

The company's new strategy involves creating less expensive trims of its existing vehicles. After confirming in July that the first of these would be a version of the Model Y, details remained scarce. Now, information uncovered from within Tesla's own software provides the first comprehensive look at what "affordable" means to Tesla.

The list of removed or simplified components is extensive. On the outside, the E41 will reportedly lose two signature Tesla features: the panoramic glass roof and power-folding mirrors. It will also come with a new front fascia, simplified 18-inch wheels, and lack the small "puddle lamps" that illuminate the ground when doors are opened.

The changes extend to the vehicle's mechanics, with the firmware suggesting a downgraded suspension system. These modifications will create a visually distinct and mechanically different Model Y compared to the version currently on sale, which starts at $45,000 in the United States.

Inside the cabin, the cost-cutting continues. The leaked details point to a simplified fiberglass headliner and basic cabin lighting limited to just the footwells. Passengers in the back will lose the second-row display and may not even have control over their air vents, as a feature described as "air wave" in the center console is reportedly absent.

The driver isn't spared either, with seat controls being simplified to a single axis of movement. This approach mirrors a base model of the Model 3 sold in Mexico, which uses cloth instead of vegan leather and features a less advanced audio system, but the new Model Y appears to take the "less is more" philosophy to a new level.

The most surprising changes involve safety and convenience technology. The E41 is expected to ship with a backup camera that lacks a heater, potentially limiting its use in cold climates. The vehicle code suggests the absence of a Tire Pressure Monitoring System (TPMS), a feature that has become standard across the industry and is mandated in many regions.

The audio system will be a basic "Essential" package. Tesla has not confirmed the final price, but the scale of these changes suggests the company may be targeting a price point around $35,000.

Tesla's strategy with the E41 is quite a gamble - it could attract a new segment of buyers to the brand, but it also can alienate existing customers and dilute Tesla's premium image. The company could also see buyers who would have paid for the more expensive model go for the cheaper version, cannibalizing its own sales of more profitable electric cars.

Via