The production launch of Tesla Inc.’s more affordable cars, including the stripped down version of the Model Y, has been delayed, Reuters reported Friday.
The electric carmaker planned to roll out its lower-cost Model Y, known internally as E41, in the first half of the year. Now production will be pushed back by at least three months, people with knowledge of the matter told Reuters. The news outlet didn’t cite a reason for the delay.
The news of the setback comes ahead of the carmaker’s hotly anticipated earnings call Tuesday, where the plans for its newest vehicles will be scrutinized by investors.
The cheaper mass-market EVs are a major focus for the company following the carmaker’s weakest quarterly vehicle sales since 2022. In the first quarter, its deliveries fell to a three-year low, and its market share has fallen from over 75% in 2022 to under 50% as of 2024.
Tesla’s earnings may also pressure Chief Executive Officer Elon Musk to address criticism that his political involvement, including his contentious dismantling of federal agencies, will keep hurting his business.
