Whenever Elon Musk mentions something that is “going to happen soon,” our logic regarding the word “soon” probably differs from that of his. Be it robotaxis or a $25,000 Tesla, everything about Musk’s timelines converts, as though being captured inside a black hole. The timeline for the long awaited and much anticipated affordable electric vehicle of Tesla is once again being altered. A report suggests that Tesla delayed the launch of what was expected to be a simple version of the Model Y. Originally expected to hit the road in the first half of 2025, the car is now likely not to come until late 2025 or even early 2026.

Tesla is at the moment of turmoil, with global sales concerns, an aging vehicle lineup, and a Cybertruck that has not lived up to the promise and hype of commercial success. Other factors that further adds up to Tesla’s worries is the continued political entanglements of their CEO, Elon Musk, and his controversial public stances, both of which have further provoked investor and consumer anxiety.

Tesla’s Affordable $25K EV

The concept of an inexpensive Tesla EV can be traced back to the Battery Day of 2020, where Musk discussed a $25,000 price point for an electric car that would be made on the low-cost next-generation platform. This vehicle, referred to as the “Model 2,” was meant to introduce a wider audience to the EV market and play a pivotal role in Tesla’s plans for autonomous robotaxis.

However, plans have changed and Musk was reported to have abandoned the idea of building a new car from scratch on the new platform. Rather, Tesla focuses on cheaper versions of its current models, Model Y and Model 3, to be the platform for the company’s future low-cost offerings.

A Balancing Act

Dreams around affordable electric vehicles from Tesla have not entirely faded, but this represents a shift in prioritization. From the $25K “Model 2” concept, it becomes evident that Tesla wants to minimize risk despite heavy pressure from the market and internal issues. As competition grows, both among traditional automakers and EV startups, Tesla’s delay could create an opportunity for competitors to attract budget conscious consumers. Time will tell, as 2025 unfolds, whether the new strategy will help Tesla remain in the lead or fall further behind than it did before.

The aura of innovation surrounding Tesla is fading with increased incidences of uncertainty and battered public image. To defend its electric crown, the company might have to do much more than cut a little from the costs of its present range, it needs to deliver on promises sooner than its rivals.