Details about Tesla’s long-awaited budget-friendly Model Y are starting to emerge, thanks to findings in a recent software update.
Well-known Tesla hacker and data miner @greentheonly shared new information on X, revealing a simplified Model Y variant internally labeled “E41.”
A More Basic Take on the Model Y
The E41 Model Y first surfaced in vehicle sightings earlier this year, but now traces of it have been found within Tesla’s firmware. Unlike the current lineup of the Model Y, the E41 is being designed as a more affordable, bare-bones option.
Tesla appears to be targeting cost reductions by removing or simplifying several features. The update indicates two pared-down audio configurations, dubbed “essential” and “essential with commodity.”
Meanwhile, the rearview camera will reportedly lose its heating element, potentially affecting performance in colder climates. The center console’s airwave system, a signature part of Tesla’s cabin airflow design, is also missing from this version.
Stripped Interior and Feature Reductions
According to the code, the simplified Model Y will carry a fiberglass headliner instead of the current premium materials. Cabin lighting will be reduced to footwell lights only, while seat adjustments are limited to a single axis, dropping the multi-directional power controls found in higher trims.
Other cost-cutting measures include the removal of power-folding mirrors, puddle lights, and the panoramic glass roof that has been a hallmark of the Model Y since its debut. The update also points to the absence of a second-row display, and no tire pressure monitoring system (TPMS).
On the outside, the budget model will ship with sinplified 18-inch wheels rather than Tesla’s standard 19- or 20-inch designs. The E41 is also noted to have its own updated fascia, which will extend to the Performance trim in future revisions.
Positioning the Model Y for a Wider Market
Tesla’s decision to develop a more affordable Model Y aligns with its strategy to expand access to electric vehicles while managing production costs. The Model Y is currently the world’s best-selling EV, but rising competition and changing economic conditions have increased demand for lower-priced options.
By stripping out non-essential features, Tesla could offer the E41 at a significantly lower entry price,allowing the automaker to grab more EV market share. However, some potential buyers may see the absence of comfort and convenience features as a step backward.
What Comes Next
Tesla has not officially confirmed the E41 or its release timeline, but the discovery in Tesla’s software suggests, and recently suspected sightings, the model is moving closer to production readiness. Given the company’s track record, the stripped-down Model Y could roll out in China first before being announced globally.
How much would you be willing to pay for this more affordable Model Y? Let us know in the comments below.
