Tesla is planning the future launch of an even more affordable version of the Model Y

With the aim of continuing to grow its market share, which appears to have plateaued with the company’s current range of electric vehicles, Tesla is studying the possible launch of an even more affordable model based on its refreshed Model Y electric SUV. At least, this is what some specialist media outlets in the sector claim, both Chinese and from other countries, citing internal sources within the company.

Production of this new model will, in principle, take place in Europe, the United States and China. We understand that this is intended to serve the company’s main markets while reducing costs, both of importation, by avoiding the application of tariffs, and of transport. In this way, the North American manufacturer will also be able to better meet demand, which we imagine will be quite high if the final price of the vehicle is sufficiently competitive.

This even more affordable new version of the Model Y will bring no innovation whatsoever, either in terms of the battery pack, the motor or the chassis. Quite the opposite: it will dispense with some non-essential elements that the refreshed Model Y currently on sale already includes. The intention of Tesla with this new model, apparently, is to apply an internal process called “Depop“, a term derived from the English word “depopulation”. That is, eliminating everything that is dispensable.

This process consists of simplifying the configuration of an existing vehicle without making significant structural changes to key components such as the battery, the motor or the chassis. In essence, this method seeks to eliminate or reduce certain non-essential features of the original design in order to cut costs and speed up the launch to market. Ultimately, it involves removing items such as luxury accessories, secondary functions or more expensive materials in favour of cheaper alternatives, while keeping intact the fundamental parts that guarantee the vehicle’s performance and safety. This would allow Tesla to reuse production lines already in place and avoid lengthy redesign or development processes for new models from scratch.

Mexico already knows what this is all about

The application of this internal “Depop” process is not, moreover, something new for Tesla, since the company has already applied this practice to an more affordable version of the Model 3, in which some components were removed, such as the rear screen, the ambient lighting or the vegan leather seats, in order to reduce costs. However, this version was only sold in Mexico, and now the company’s intention with the more affordable version of the Model Y would be to sell it globally.

Some reports on this matter indicate that mass production of this even more affordable Model Y will probably begin in 2026, with a price at least 20 per cent lower than the basic Model Y currently on sale. That is, if this is ultimately the case, and bearing in mind that in Spain the Model Y is available from €44,990, this more affordable new model could cost around €35,990. In any case, it should not be forgotten that this is nothing more than speculation and nothing has been officially confirmed.

Finally, it is worth noting that Elon Musk himself committed only a few days ago to doubling vehicle production in the United States over the next two years, something that seems quite difficult if Tesla does not launch new, more affordable models onto the market. This announcement from the head of Tesla may therefore give us a clue that the launch of this more affordable Model Y may well be part of the company’s future plans.

Technical specifications of this car

CrossoverTesla Model Y4 versions · from 39,990 €