The rumor mill has been churning about a more affordable Tesla Model Y for a while now. But thanks to some clever digging into a recent software update, the curtain is finally starting to pull back. A well-known tech enthusiast, @greentheonly, has uncovered fresh details about a simpler Model Y variant. Internally, Tesla calls this new version the “E41.”
The E41 Model Y has been spotted in the wild this year. Now, actual evidence of it shows up inside Tesla’s firmware. This version is designed to be a more basic, budget-friendly choice. Tesla seems to be cutting costs by taking out or simplifying many features. The software hints at two basic audio settings, labeled “essential” and “essential with commodity.”
The rear camera will reportedly lose its heating element. This could mean trouble for its function in colder weather. The central console’s unique air wave system, which helps manage cabin airflow, is also missing from this Model Y.
A New Baseline for the Model Y
According to the code, the simpler Model Y will have a fiberglass ceiling instead of the current premium materials. Inside lighting will shrink to just footwell lights. Seat adjustments will only move on one track. This removes the fancy multi-directional power controls found in higher-end models.
simplified fiberglass headliner
simplified cabin lighting (footwell only)
simplified seat controls (single axis)
no power mirror folding
no puddle lamps
no glass roof
no second row display
no tpms
simplified 18″ wheels— green (@greentheonly) September 20, 2025
More ways Tesla is trimming the fat include taking away power-folding side mirrors and puddle lights. The glass panoramic roof, a trademark of the Model Y since it first launched, is also gone. The software update also points to no screen for the second row and no Tire Pressure Monitoring System (TPMS).
On the outside, this budget model will ride on simpler 18-inch wheels. Standard Tesla Model Ys usually have 19 or 20-inch designs. The E41 also gets its own updated front panel. This new panel design will even make its way to the Performance version later on.
Tesla’s Strategic Move
Tesla’s choice to build a more affordable Model Y fits its plan to make electric cars available to more people. It also helps them manage production costs. The Model Y currently stands as the world’s most popular electric vehicle. Yet, more competition and shifting economic times have increased the desire for lower-priced options.
as I am looking more into it:
there’s going to be RWD and AWD trims.
Both have special motor configurations, though no idea what the motors would be.Let’s see if may be I can get internal renders next.
— green (@greentheonly) September 20, 2025
By removing features that aren’t absolutely necessary, Tesla can offer the E41 at a much lower starting price. This could help the carmaker grab even more electric vehicle market share. But some potential buyers might feel a bit short-changed by the lack of comfort and convenience features.
Tesla hasn’t officially confirmed the E41 or when it will launch. However, these software findings, along with recent sightings, suggest the model is close to mass production. Based on the company’s past actions, this simpler Model Y might debut in China first. A global announcement could follow later.