Tesla Will Launch Affordable Version Of The Y Model Amid The Decline Of Trump's Policy Sales And Pressure

Tesla Model Y became the best-selling vehicle in Norway, Turkey, the Netherlands, Switzerland, and Austria in June 2025. (Photo: Tesla)

JAKARTA Facing the decline in sales and revenue from emission credit, Tesla reportedly took a bold step by launching a cheaper variant than the Model Y. This is not an entirely new model as speculated, but a noise' version of Tesla's best-selling electric SUV which is expected to boost demand in the domestic market, especially ahead of the end of its 7,500-dollar electric vehicle subsidy due to President Donald Trump's policy.

Previously, Tesla CEO Elon Musk had signaled plans for the presence of more affordable electric vehicles but details of prices and market targets had not been disclosed.

Production itself is scheduled to start in August or September, as part of a defensive strategy amid market pressure and major regulatory changes in the US.

This announcement, reported by Autocar, Thursday, July 24, comes shortly after Tesla reported its worst financial performance in years. In the second quarter of 2025, revenue fell 16 percent to $1.17 billion, while sales fell 13 percent. The most striking is revenue from emission credit which slumped by 51 percent compared to the same period last year's direct impact of the easing of electric car rules implemented by the Trump administration.

The new policy removes the obligation of automotive manufacturers to meet electric vehicle quotas, reducing their need to buy emission credit from Tesla. In addition, the plan to lift President Joe Biden's legacy regulation, which targets 50 percent of new cars to be electric by 2030, is scheduled to take effect in the near future, adding to Tesla's burden on its primary market.

Musk himself admits that the next few quarters will be difficult times. He stated, "I'm not saying it will happen, but most likely we will face a challenging period." Not surprisingly, this comment sparked a decline in Tesla's share price of up to 7 percent in one night.

In addition to pressure in the US, Tesla has also been hit in China due to trade tensions and public perceptions affected by Musk's closeness to Trump.

Despite facing storms from various directions, Musk remains optimistic. He hopes self-driving technology and robotic projects such as Cybercab, which are being tested in Texas, will be a source of huge revenue in the near future.

"If we can achieve full-scale autonomy in the second half of next year, I'm sure Tesla's economy will change drastically," he said. However, for now, all eyes are focused on whether this efficient version of the Model Y is able to save Tesla from the growing pressure.