Hacker shares details on Tesla’s rumored Model Y ‘E41’ cost-cut variant

A hacker finds secrets for a new Tesla

A hacker has uncovered several new details about a more affordable Tesla Model Y. This new car, the E41 Model Y, will be sold with fewer features than the standard model. The hacker, who goes by Green, examined Tesla’s software code and identified which parts would be removed to lower the car’s price.

This new model is being made because Tesla’s car sales have not been excellent recently. A special government credit for electric vehicles is also set to expire soon, exacerbating the situation. As a result, launching an affordable car has become crucial for the company.

Stripped-down features save money

Tesla is removing and modifying many of its standard features to make the Model Y more affordable. The car won’t have the regular glass roof and will instead have a metal one. It also won’t come with the light bars in the front and back, which are a popular design in China.

Other missing parts include power-folding side mirrors and puddle lamps, which illuminate the ground when the car doors are opened. These changes are designed to help Tesla reduce the costs associated with vehicle production.

Many features are also downgraded

The stripped-down Model Y will have other, less pleasant parts than the regular model. The fabric inside the roof, called the headliner, will be made more simply. The car’s interior lights will also be more basic than those of others.

Reports describe single-axis/limited seat adjustments instead of multi-way power seats. It will also come with basic 18-inch wheels and a simpler suspension system. These changes are designed to make the car more affordable for all buyers.

Legal requirement for cars in the U.S.

The stripped-down Model Y will feature a simplified headliner and a basic audio system with limited speaker capabilities. It also won’t have a heater for the rear camera or puddle lamps, which light up the ground for drivers. These changes help lower the car’s final price.

While the car’s software code suggests some parts are missing, all vehicles sold in the U.S. are legally required to have a tire pressure monitoring system. Tesla will likely use an indirect system that checks tire pressure by using wheel speed data from the brakes to comply.

Not a great car for some customers

With so many features removed, the stripped-down Model Y may not be suitable for every type of customer. The report suggests it could end up resembling a very basic car, almost like a taxi.

This may not appeal to many regular people who are seeking additional features. Instead, the car might be popular among companies that need a fleet of cars, such as ride-sharing services. The Cybertruck’s sales showed that simply removing features won’t help unless the price is significantly reduced.

Glass roof spotted on a test car

The launch of the stripped-down Model Y was pushed back from June to the second half of 2025. This was due to some developmental delays. Despite the delays, several test cars have already been spotted driving around the United States.

One shared photo showed a test car with a roof that looked like glass. However, since the roof was not transparent from the inside, it was likely a test panel or placeholder, not part of the final production version of the car.

The new Model Y is in a tight spot

Pricing the new Model Y will be a big challenge for the company. It must be much cheaper than the current Model Y, which costs about $44,990.

At the same time, it can’t be so cheap that it makes people choose it instead of the Model 3. The Model 3 Long Range starts at $42,490, so the new Model Y has to fit into a very tight price spot. The company needs to find a price that attracts new buyers without losing sales from its other cars.

The stripped-down Model 3 in Mexico

The new Model Y is not the first time Tesla has made a stripped-down car. The company also sold a simpler Model 3 in Mexico. This version used fabric seats instead of the usual vegan leather to help cut costs.

This Model 3 did not have the rear infotainment screen or the panoramic roof. These changes were made to save a significant amount of money and offer a more affordable car to customers in Mexico.

More cost-saving on the Model 3

The Model 3 sold in Mexico had even more changes to help save money. The heated and cooled seats were not available, nor was the heated steering wheel. This made sense because Mexico has a much warmer climate most of the year.

The car’s lighting was also simplified, featuring only white ambient lights. It also had fewer speakers for the audio system. These changes demonstrated how Tesla can reduce costs by eliminating some popular features.

A goal to cut manufacturing costs

Tesla has been working to reduce the cost of building its cars for many years. At Tesla’s Investor Day in March 2023, the company announced its goal to halve the cost of its next cars. This would make them far more affordable for customers.

The company plans to achieve this through new factory methods, such as building cars in smaller parts first. This strategy enables them to use less space and money, making it possible to build many more cars for significantly less money in the future.

Switching to different batteries

To help lower costs, Tesla has changed its battery types. The company began to use batteries made with lithium iron phosphate, or LFP.

These batteries are less expensive because they don’t need expensive materials like cobalt. Tesla confirmed this shift in a public update in October 2021. By using these batteries in all of its standard-range cars, the company could save money and pass some of those savings on to buyers.

A historic $35,000 car

In 2019, Tesla offered a base model of the Model 3 for a limited time at a price of $35,000. This was a goal Elon Musk had to make electric cars more affordable for everyone.

The company cut the car’s features to keep the price low. This move demonstrated that Tesla was willing to adjust its product to reach a specific price point, even if only temporarily.

Price cuts when tax credits ended

Tesla has a history of adjusting prices to boost sales, particularly when government credits are updated. In early 2019, the federal tax credit for electric cars was cut in half, from $7,500 to $3,750 for Tesla.

To help buyers, Tesla lowered the price of all its cars by $2,000. This demonstrated how the company would respond to market changes, striving to maintain its vehicles as a desirable option for many customers.

The Cybertruck’s pricing challenge

The history of Cybertruck also gives clues to Tesla’s struggles with pricing. The company struggled to make the Cybertruck affordable enough for people to purchase. The promised price of $40,000 was much higher for the first models.

Just removing features, as they did with the stripped-down Model Y, may not be enough to attract buyers. Tesla learned that the price must match what people are willing to pay for a simpler car, or they won’t buy it.

Price changes due to world events

The price of the Model Y has fluctuated multiple times since its introduction. This occurred due to significant global events, such as the pandemic and supply chain issues.

When there was a parts shortage, the car cost went up. Tesla sometimes had to raise prices to cover these costs. The company learned to quickly adjust prices in response to these real-world business challenges.

Curious how the process really works? Get the details in what to know before charging a non-Tesla EV at a Tesla Supercharger.

An ongoing focus on cost savings

From its first sports car, the Roadster, to the latest Model Y, Tesla has always focused on making its cars more affordable. This is a crucial part of the company’s “master plan” to make electric cars for everyone worldwide.

Tesla’s efforts to cut costs are a constant part of its business. They achieve this by sourcing cheaper materials, upgrading their factories, and even removing features to make their cars more accessible to a wider range of customers.

Wondering why Tesla pulled the plug on its most affordable truck? Read on in Tesla scraps cheapest Cybertruck as demand falls short.

What do you think of Tesla’s budget move? Share below.

Read More From This Brand:

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This slideshow was made with AI assistance and human editing.