Just recently, an affordable Tesla Model Y prototype with camouflage was spotted in the Bay Area. Now we have a new leak from the 2025.32.6 software update that hints that a budget-friendly Model Y – internally referred to as “E41” may soon join the lineup. In contrast to its high-priced counterparts, this model appears to be a cost-saving SUV that prioritizes price to the fullest. Should the information be accurate, however, the E41 will make the entry point for Tesla ownership much lower, though not without trade-offs in comfort, features, and design.
A New Design Direction
The leaks suggest that the E41 will feature a distinct fascia design, making it aesthetically different from the other trims of the Model Y. Although Tesla has frequently used minor updates, the company appears to be telling its customers clearly that it is an alternate version, one that has its own personality. Eliminating the design overlap may enable consumers to notice at a glance that the E41 is the cheaper one.
The other evident modification is the lack of the glass roof, which is a Tesla-typical feature and increases the feeling of openness within the cabin. In its place, a simplified fiberglass headliner will be adopted, which highlights the concern of practicality and cost reduction.
Simplified model Y "E41" that was sighted live now appears in the firmware too.
They will have two audio options: "essential" and "essential with commodity"
Backup camera would lose a heater
no "airwave" in console
E41 fascia (performance will also get a fascia update)— green (@greentheonly) September 20, 2025
Stripped-Down Interior
Probably, one of the most outstanding changes in the E41 is the sparse cabin features. The car will not have the second-row screen, which was added to recent updates to the Model Y and has become one of the selling features that appeal to families.
Tesla is also restricting the interior lighting to the footwells solely, in contrast to the ambient lighting strips that are available in the higher-end models. Other elements that are to be eliminated from the list include puddle lights, airwave vents, and a heated backup camera. Even seat controls are made simpler, going down to single-axis movement, and this implies that there is less adjustability in arriving at the ideal driving position.
Another area where Tesla is making definite lines is the audio system. The customers will be offered only two options: Essential and Essential with Commodity, which will provide the customers with fewer speakers and less immersive sound compared to the company’s standard premium setup.
Simplified Hardware Choices
The E41 is also losing some of the more convenient and high-tech hardware. It will not have power-folding side mirrors, which are common in most modern cars. Equally, tire pressure monitoring systems (TPMS) are also said to be being dropped, which is surprising considering that they are one of the elements stipulated by the regulations in most jurisdictions. Based on the region of sale, Tesla may have to respond to this disparity.
The suspension system, too, is said to be simplified, and this could lead to lower refined ride quality than the long-range and performance trims. The E41 will be equipped with 18-inch wheels, which are smaller than the 19-inch and 20-inch wheels used in the high trims.
The Model Y has been Tesla’s global bestseller, but its pricing remains out of reach for many buyers. If the E41 enters the market at a significantly lower price point, Tesla could capture a new demographic: first-time EV buyers and budget-conscious families who might otherwise look to non-Tesla alternatives.
