Tesla Model Y Updates: Price Adjustments and the New E41 Variant for UK Buyers
Source: Tesla Gallery
Tesla has announced changes to its Model Y pricing, including reductions across the range, alongside details of a new budget variant codenamed "E41". These adjustments come as competition in the electric SUV segment continues to grow, reflecting broader trends in the evolving electric vehicle market.
The E41 Variant: Tesla's Budget Revolution
Leaked details have emerged about Tesla's upcoming "E41" Model Y variant, which is expected to take a different approach from the existing Model Y. Industry reports and recent video leaks indicate that this entry-level model will have a simpler feature set to achieve a lower price point, potentially broadening access to Tesla’s electric vehicle technology. E41 vs Standard Model Y: The Complete Breakdown
The leaked specifications reveal substantial differences between the standard Model Y and the upcoming E41 variant:
Exterior Design Changes:
No front lightbar: The distinctive LED strip that spans the front of the standard Model Y
No rear lightbar: Removing the connected taillight design that defines Tesla's current aesthetic
Standard headlights: Matrix LED technology replaced with conventional units
No glass roof: The panoramic glass roof that's become synonymous with Tesla interiors
Interior Design Changes:
Textile seating: Replacing the standard vegan leather with fabric upholstery
No ventilated seats: Removing the climate-controlled seating feature
No heated seats: A significant omission for UK buyers accustomed to this comfort feature
No heated steering wheel: Another winter comfort feature absent from the E41
Basic ambient lighting: White-only lighting instead of RGB customisation options
No rear touchscreen: The 8-inch entertainment display for rear passengers removed
Reduced audio system: 10+1 speakers versus the standard 15+1 configuration
Functional Differences:
Two-piece centre console: A cost-saving measure replacing the premium one-piece design
Manual rear seats: No power-reclining functionality for rear passengers
Basic air vents: Fixed front vents without oscillating capability
No acoustic glass: Potentially increasing road noise compared to the premium variant
No optional tow hitch: Limiting utility for those requiring towing capability
Image Source: notateslaapp.com
What Remains Unchanged
Despite the extensive feature reductions, the E41 variant reportedly maintains several core Tesla technologies:
Bumper camera: Essential for Autopilot functionality
Turn signal stalks: Retaining traditional controls unlike some recent Tesla models
Supercharger access: Full compatibility with Tesla's charging network
Core infotainment: The central touchscreen and Tesla's software ecosystem
Safety systems: Standard Tesla safety features and Autopilot capabilities
Pricing Strategy and Market Positioning
Industry sources suggest the E41 variant could launch with pricing significantly below the standard Model Y, potentially starting under £40,000. This would position it directly against established competitors like the Hyundai IONIQ 5 and create Tesla's most accessible SUV offering to date.
Estimated UK pricing structure:
Model Y E41 (RWD): £38,000-£42,000 (estimated)
Model Y Long Range: £49,990 (after recent reduction)
Model Y Performance: £54,990
For company electric car scheme participants, the E41's lower price point could translate to monthly payments under £300 through salary sacrifice arrangements, making premium electric motoring accessible to a broader range of UK employees.
Impact on the UK Electric Car Market
The arrival of the Model Y E41 could influence the electric SUV market in the UK. By providing Tesla’s core technology and access to its charging network at a lower price point, the model appears aimed at reaching a broader segment of buyers rather than only the premium market.
The E41 variant is expected to compete with several existing models in the electric SUV segment:
Hyundai IONIQ 5 (from £39,900)
Similar pricing but with more premium features included
Impressive charging capabilities and range
May struggle against Tesla's brand recognition and charging network
Volkswagen ID.4 (from £37,970)
Traditional European build quality
Comprehensive feature set at competitive pricing
Less advanced software ecosystem compared to Tesla
Kia EV6 (from £40,895)
Premium positioning with advanced technology
Similar pricing but potentially better standard equipment
The E41’s performance in the UK market will likely depend on whether buyers value Tesla’s core technology and charging network more than the premium features typically offered in this segment.
The Salary Sacrifice Advantage
For UK employees, the E41 variant combined with an electric car salary sacrifice scheme could represent unprecedented value. Through The Electric Car Scheme, drivers can achieve savings of 20-50% compared to traditional leasing arrangements.
Projected Monthly Costs Through Salary Sacrifice
Based on estimated pricing, the E41 through salary sacrifice could deliver:
40% tax bracket employee:
Estimated gross monthly cost: £420-£480
After tax savings: £280-£320 net monthly cost
BiK tax (3%): Approximately £35-£40 monthly
20% tax bracket employee:
Estimated gross monthly cost: £420-£480
After tax savings: £340-£380 net monthly cost
BiK tax (3%): Approximately £35-£40 monthly
These projections make the E41 potentially one of the most affordable routes to Tesla ownership for UK drivers, particularly when combined with the company's extensive Supercharger network and proven reliability record.
When Will the E41 Arrive?
While Tesla has not officially confirmed the E41 variant, industry sources suggest an announcement could come within the next three to six months, with deliveries potentially starting in late 2025 or early 2026.
This timeline would allow Tesla to:
Assess market response to current Model Y price adjustments
Finalise production processes for the cost-reduced variant
Coordinate the launch with broader global market strategies
For those considering a salary sacrifice electric car, it may be worth monitoring Tesla's official announcements whilst exploring current Model Y options through schemes like The Electric Car Scheme.
Image Source: DriveGreenLiveGreen/X
The Trade-Off Question: Features vs Affordability
The E41 variant highlights potential shifts in consumer priorities within the electric vehicle market. By offering a simpler feature set without elements such as a glass roof, ventilated seats, and ambient lighting, Tesla appears to be focusing on providing core electric vehicle technology at a lower price point rather than premium comforts.
Potential benefits of the E41:
Access to Tesla’s established technology and charging network
Lower cost compared with premium variants
Retention of core safety systems and Autopilot capabilities
Potential for strong resale value
Potential considerations of the E41:
Fewer premium features compared with higher-spec models
Possible increase in road noise without acoustic glass
Reduced comfort in colder climates without heated seats
Simpler interior materials compared with higher-spec models
For many UK buyers, particularly those accessing vehicles through electric car salary sacrifice schemes, the cost savings may outweigh the feature reductions, especially given the low 3% Benefit-in-Kind rate for electric vehicles.
Expert Industry Perspective
The rumoured E41 variant represents Tesla’s effort to make electric vehicle ownership more accessible. By retaining core technology while simplifying features to reduce costs, the model appears aimed at reaching a wider segment of the market.
This approach could be particularly relevant in the UK, where government incentives and salary sacrifice schemes make electric vehicles more accessible to cost-conscious buyers. The combination of Tesla’s established brand, charging network, and adjusted pricing may support broader adoption.
Looking Ahead: Tesla's Market Strategy
The Model Y’s pricing changes and the potential E41 variant launch reflect broader trends in the electric vehicle market. As manufacturing costs evolve and competition grows, premium features are increasingly seen as optional differentiators rather than essential components.
For UK consumers, this trend is relevant for those accessing vehicles through The Electric Car Scheme and similar programmes. Whether opting for the premium Model Y with all features or the rumoured E41 variant with core Tesla technology, salary sacrifice arrangements can provide meaningful savings compared with traditional financing options.
Ready to explore how much you could save on a Tesla Model Y through salary sacrifice? Get an instant quote to discover your potential savings with The Electric Car Scheme, and stay updated on the latest E41 developments.
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Last updated: 21/07/2025
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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