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.

Tesla delays production of cheaper EVs, including Model Y variant, amid sales slump, rising competition, and political backlash.

Tesla’s long-promised, lower-cost version of its best-selling Model Y has hit a snag – and the company won’t say why. Production of the more affordable electric SUV, codenamed E41, was supposed to begin in the U.