The arrival of a new Tesla Model Y variant with pricing roughly on par with the Chevy Equinox EV has been delayed until late 2025 or early 2026, sources say.

While the price point for an "affordable" Tesla hasn't been revealed, Musk has long talked about an affordable EV for around $25,000, which would be roughly half the price of the current Tesla Model Y. The company may be hoping that a cheaper Tesla would help the company boost sales during a difficult time period.

A smaller and more affordable Model Y that's 20% cheaper to produce was initially planned to be released in the first half of this year