Expected to Launch in the Second Half of the Year: Tesla Plans to Introduce a More Affordable Model Y in the Chinese Market.

According to industry insiders, Tesla is accelerating development of a budget-friendly Model Y variant for China — the world’s largest market for best-selling electric cars. Led by its local team, the simplified model retains the current Model Y’s battery, powertrain, and chassis to expedite production. Though unconfirmed by Tesla China, the move aims to strengthen competitiveness amid rising domestic EV rivalry.

The new model will adopt an alphanumeric naming system (e.g., “Model Y25”), replacing Tesla’s English labels. This mirrors a stripped-down Model 3 variant sold in Mexico — with single-color ambient lighting, fabric seats, and removed heating functions — priced ¥28,600 lower. However, sources confirm such drastic decontenting won’t apply to China’s premium-focused EV buyers.

Launch timing reportedly hinges on the refreshed Model Y’s market performance. If sales underperform expectations, the cost-effective variant could debut as early as late 2024, strategically positioning Tesla against China’s best-selling electric cars like the BYD Song Plus and Aion Y.