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Tesla's expansive supply chain is rapidly becoming its Achilles heel, as manufacturing synergies spread across the globe on the basis of competitive advantage buckle under President Trump's tariff-laden cudgel. It was just last week when Tesla canceled its plans to ship parts for the Cybercab and the Semi to the US from China. Now, add the much-anticipated cheaper version of the Model Y to the EV giant's growing list of disrupted products.
For the benefit of those who might not be aware, Tesla has been working on a cheaper, sub-$35,000 model for a while now. Earlier this year, speculation was rife that the new model would take the shape of a hatchback and open a whole new TAM for the EV giant, while allowing it to better compete with BYD Dolphin and Volkswagen ID.3 in China.
Now, however, we've just received two tantalizing tidbits on this front. First, the new model is not a hatchback, but merely a stripped down version of the Model Y, offering slower acceleration, smaller battery packs, smaller screens, etc. Second, that cheaper model has now been delayed.
It appears that $TSLA will delay the launch of its more affordable vehicles until end of 3Q. Our bigger concern is the story appears to confirm our fear that the new cheaper vehicles will be stripped down versions of M-Y and M-3 (slower 0-60, smaller batteries, cloth seats,… https://t.co/oVlEsu3CHF
— Gary Black (@garyblack00) April 19, 2025
Of course, according to Future Fund's Gary Black, the cheaper Model Y will simply cannibalize volume from Tesla's higher-margin vehicles, and will not meaningfully add to the overall sales momentum. It is for this reason that we feel the delay of the cheaper Model Y amid tariff-induced mayhem is probably a good thing for Tesla's bottom-line.
Meanwhile, as mentioned earlier, Tesla has also rescinded its plans to ship parts for the Cybercab and the Semi from China, citing stratospheric tariffs on Chinese imports as the raison d'être. The EV giant was previously aiming to start trial production of the two models in October 2025, with mass production originally slated for 2026. The shipping halt, however, has complicated Tesla's production cadence at Texas and Nevada, home to the production lines for the Cybercab and the Semi, respectively.
1 minute before the close on Friday someone sold $2,500,000 worth of $TSLA calls
This afternoon $TSLA delays its launch for its affordable Model Y until 2026
Its never been a better time to be an insider pic.twitter.com/FJYBE1zNRT
— John Trades MBA (@JPATrades) April 18, 2025
Finally, we leave you with this delightful coincidence: someone is about to make a killing on Tesla's downward momentum come Monday.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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