Originally conceived as a $26,500 vehicle on a new platform, the idea was scrapped in favor of reworking existing models. This revised strategy allows Tesla to stay competitive in a market increasingly saturated with affordable electric vehicles, especially from Asia and Europe.
The E41 is expected to hit the market in the final quarter of 2025, following a delay from Tesla’s initial roadmap. Its existence was revealed through data found in a recent firmware update, analyzed by the well-known Tesla hacker @greentheonly, who outlined several feature reductions across the vehicle.
Simplified Features across Interior and Exterior
Tesla has made a series of technical cuts to lower the Model Y’s production cost. The most noticeable is the removal of the panoramic glass roof, replaced with a basic fiberglass panel. The ambient lighting system has been eliminated, leaving only footwell lighting in place.
Rear visibility is preserved with a backup camera, though it no longer includes a defroster. Ventilation to the second row has been cut, and there’s no airwave function in the central console. The vehicle’s fascia will receive an updated, simplified design, which also applies to the performance model, according to the same firmware analysis.
Audio options have been reduced to two basic setups: “essential” and “essential with commodity.” Seat controls are now single-axis, limiting adjustability. These decisions reflect a targeted effort to minimize features considered non-essential to the driving experience while retaining core EV functionality.
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Downgraded Cabin and Omitted Equipment
The E41’s interior has been simplified further compared to the standard Model Y. Tesla has removed electric folding from the side mirrors and eliminated under-door courtesy lights entirely. There is no second-row screen, which has become a staple in newer premium versions.
Materials inside the cabin are expected to be more modest. Rouleur Électrique notes that Tesla has already tested cloth seating in the entry-level Model 3 sold in Mexico, replacing the vegan leather used in other markets. This trend likely continues with the E41.
Among the more surprising omissions is the tire pressure monitoring system (TPMS), a tool typically considered essential for optimizing electric range. Wheel design has also been adjusted to 18-inch simplified rims. Taken together, these changes clearly signal Tesla’s focus on cost-efficiency over luxury or user customization in this model.
Aggressive Pricing, Uncertain Brand Impact
Tesla has not officially released a price for the E41, but estimates suggest a target below $37,000 before incentives would be needed to make the model competitive. For reference, the current Model Y starts at $47,500 in the US. This price gap could help attract a new segment of cost-sensitive consumers.
That said, suspension has also been described as “simplified,” though specific mechanical changes were not detailed. This could affect handling or ride comfort, typically key strengths of the Model Y. The potential impact on driving quality remains unknown.
Tesla’s decision to expand its lineup downward isn’t without precedent—or risk. The company previously attempted a budget Cybertruck variant, which was quickly discontinued due to lack of interest. As reported by the same source, first units of the E41 were reportedly assembled as early as June 2025, suggesting the project is moving forward despite no official communication from Tesla.
