Tesla will unveil a new, lower-priced version of its Model Y crossover later on Tuesday.
Originally scheduled to begin production in the first half of the year, the cheaper Model Y was delayed by some months and is expected to support Tesla sales starting from the final quarter of the year.
In an internal meeting with staff, the GigaBerlin head André Thierig told employees in Germany that production at the Grünheide factory will begin later this year.
At the planned price, the new model will be “about 10%” cheaper than the current Model Y, Thierig said during an internal event at the Berlin-area plant on Monday,
“It will be about ten percent cheaper than the current Model Y,” Thierig stated, according to the local media outlet Handelsblatt.
However, it was not clear whether the executive was referring to the purchase price or to the cost of production.
Pilot production at the German factory will start later this year, while production in Austin, Texas, is expected to begin earlier, according to people familiar with the matter.
Security guards have been stationed at the German site to monitor the early production runs and prevent leaks, Handelsblatt said, adding that Thierig presented the new variant to the entire workforce this week.
The new version, referred to internally as E41, will feature “super fabric seats” made from cloth instead of leather and is described as “wide-reach optimized,” designed to appeal to a broader customer base.
Tesla began production of the revamped Model Y at Giga Berlin in February and added the Performance variant in September.
The official unveiling of the new Model Y is scheduled for later today, following a series of teaser videos posted by Tesla on social media over the past 72 hours.
The latest clip shows a dark setting illuminated by two headlights, revealing the front design of a vehicle whose lighting pattern matches that of the cheaper Model Y recently spotted uncovered at the company’s factory in Austin.
The vehicle has single-part headlights and a front bumper camera, and does not have Tesla‘s signature glass roof.
The new Model Y is rumored to come with 18-inch Aperture wheels and a simpler interior design which includes ditching the second row touch screen.
