Tesla will launch a less expensive variant of the Mannequin Y in an effort to extend gross sales after reducing considered one of its worst quarterly gross sales.

In January, Tesla boss Elon Musk launched a sequence of ‘extra reasonably priced fashions’ by this summer season to broaden its attraction. Fairly than a very new mannequin, it amounted to an outstretched model of the American EV model’s prime vendor as an alternative.

The manufacturing is scheduled to begin from August or September.

Musk didn’t say whether or not different reasonably priced fashions, resembling a brand new mannequin 3, are deliberate. He additionally didn’t present extra data, resembling which market the brand new mannequin Y, goal volumes or a goal value.

The present least expensive model of the SUV begins at £ 51.990.

Tesla hopes that the brand new base mannequin will particularly assist stimulate gross sales within the US, the place the present $ 7500 allowance for electrical vehicles of $ 7500 shall be stopped as a part of President Donald Trump’s suggestions from emission mandates.

The brand new mannequin announcement got here after Tesla delivered heavy losses within the second quarter of 2025. Musk has warned that the development will proceed in what is anticipated to be considered one of Tesla’s most difficult durations.

An important excerpt from the EV maker’s earnings within the second quarter, launched on Wednesday evening, was an revenue of 16% to $ 1.17 billion.

Tesla blamed it for a 13% drop in gross sales, a discount within the common promoting value of the mannequin and a rise in working bills.

Most significantly, the income from electrical automobile credit, bought by different producers to realize mandate emissions targets – that Tesla has beforehand benefited – for the reason that second quarter 2024 with 51% (or $ 441 million), together with $ 154 million for the reason that earlier quarter alone.

This has been powered by Trump’s waste of electrical motor rules within the US, which implies that automobile producers not have to realize sure EV manufacturing targets and due to this fact there is no such thing as a want to purchase credit.

The recall of former President Joe Biden’s laws, introduced in January, which instructs 50% of all new vehicles bought within the US to be by 2030 – will come into impact within the coming months.

As such, Musk advised reporters in regards to the earnings name that Tesla ‘might in all probability have some tough quarters; I am not saying we’ll do it, however we will ‘.