Tariffs delay Tesla's budget Model Y and more

Tesla struggles with supply chain problems as global trade tensions rise. The company recently canceled plans to ship parts for its Cybercab and Semi truck from China to the US. These changes happened because of high tariffs on Chinese imports under President Trump. Tesla also delayed its cheaper version of the Model Y electric car that would cost less than $35,000.

Many people thought the new affordable Tesla would be a hatchback to compete with cars like the BYD Dolphin. However, reports show it will just be a simpler Model Y with slower speed, smaller batteries, and reduced features. Some experts believe this delay might actually help Tesla make more money. Gary Black from Future Fund says cheaper cars would steal sales from Tesla's more expensive models without increasing total sales.

The company wanted to start making small batches of the Cybercab and Semi truck around October next year. Mass production was planned for 2026. These vehicles are manufactured at factories in Texas and Nevada. The sudden stop in parts shipments has created problems for production plans at both locations.
 

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