Tesla is preparing a more affordable version of the Model Y, codenamed E41, which will be a stripped-down alternative to the standard model. Much like the base Model 3 in Mexico, this new version will use cheaper materials and come with fewer features. The aim is to reduce costs further, making it the most budget-friendly Model Y option yet.

Early details uncovered by Tesla hacker Green, through firmware analysis, reveal a wide range of cutbacks. These include a simplified audio system, no heated backup camera, no rear air-flow controls, and downgraded suspension. The cabin will also be pared back with a fiberglass headliner, footwell-only lighting, single-axis seat controls, and no power-folding mirrors. Other removals include the glass roof, puddle lamps, rear display, tire pressure monitoring system, and ambient lighting.

Externally, the E41 is expected to have a new front fascia and simplified 18″ wheels, signaling visible differences from higher trims. Tesla has not confirmed a launch date yet, but reports suggest the company may hold off until Q4.