The production launch of Tesla Inc’s more affordable cars, including a streamlined Model Y, has been delayed, Reuters reported on Friday.
The electric carmaker plans to launch its lower-cost Model Y, known internally as the E41, in the first half of this year. Production will now be delayed by at least three months, sources familiar with the matter told Reuters. The news outlet did not give a reason for the delay.
News of the setback comes ahead of the automaker’s highly anticipated earnings call on Tuesday, where investors will scrutinize plans for its latest vehicle.
Cheaper mass-market electric vehicles have become the company’s main focus after the automaker posted its weakest quarterly vehicle sales since 2022. Its deliveries fell to a three-year low in the first quarter, and its market share has fallen from more than 75% in 2022 to less than 50% in 2024.
Tesla’s earnings could also force Chief Executive Elon Musk to respond to criticism that his political involvement, including his controversial dismantling of federal agencies, will continue to hurt his business.
Tesla did not immediately respond to a request for comment.
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