Tesla launches cheaper Model Y as Elon Musk pivots to robotics

Tesla is shaking up its showroom as it grapples with a global sales slump and a major shift in corporate identity.

The electric car giant has introduced a more affordable version of the Model Y, priced at $43,630—roughly £34,400.

To achieve this lower price point, Tesla has stripped back the luxury, replacing leather with cloth seats and removing the panoramic glass roof and rear climate-control screen.

While the range is slightly shorter at 294 miles, the all-wheel-drive powertrain still delivers a punchy 0-60 mph time of 4.6 seconds.

This move accompanies a broader rebranding. Tesla has quietly dropped the "Standard" badge, opting for "Rear-Wheel Drive" for entry-level cars, while "Premium" and "Performance" remain for top-tier models.

More significantly, CEO Elon Musk announced the end of the road for the company's oldest vehicles.

“It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy,” Musk stated during a recent earnings call.

The strategy marks a pivot away from traditional car manufacturing towards robotics and self-driving technology, including the autonomous Cybercab and Optimus robot.

With sales of the Model S and X accounting for just 3% of recent deliveries, Tesla is trimming the fat to compete with rivals like BYD and Volkswagen.

By offering more "no-frills" options, the company hopes to reclaim its dominance in an increasingly crowded electric vehicle market.