After more than a year of speculation, Tesla’s long-awaited budget model finally debuted in 2025 as a stripped-down version of the Model Y. At launch, the automaker gave little detail, but now a firmware decode reveals exactly what Tesla is willing to sacrifice to create its cheapest SUV yet. And the list is surprisingly long.
According to Electrek, the well-known Tesla hacker “greentheonly” uncovered evidence within the latest Model Y software, referring to the budget version as “E41”. The code doesn’t just reveal the name but also outlines the features Tesla has cut to make the vehicle more affordable.
On the outside, the entry-level Y will ride on simplified 18-inch wheels paired with downgraded suspension. Even more striking, the car may lack a traditional tire pressure monitoring system, despite this being a legal requirement in the US since 2007. Instead, Tesla could rely on indirect monitoring through wheel speed sensors, a less precise approach that risks misreading pressure when non-standard tires are fitted.
Other exterior downgrades include no glass roof, no puddle lights, non-power-folding mirrors, a redesigned front bumper, and a rearview camera without a heating element to clear ice or condensation.
Inside, the cost-cutting continues. The audio system is listed as “essential”, while the “air wave” climate feature for rear passengers has been removed, likely leaving the second row without independent airflow controls. The headliner will be made from fiberglass, interior lighting will be limited to footwells, and the seats will offer only minimal adjustability, potentially manual recline with single-axis electric sliding.
Pricing remains the key unknown. Currently, the cheapest Tesla Model Y is the Long Range RWD at $44,990. With all these sacrifices, Tesla may slash nearly $10,000 off the sticker, hitting the long-promised $35,000 price point. Whether this bare-bones version finds buyers is another matter. The smaller, more practical Model Y could prove far more appealing to budget-conscious EV shoppers.
