Tesla to Release 20% Cheaper Model Y-Based Crossover to Preserve Chinese Market

It has long been no secret that in the next couple of years Tesla is going to bring to market more affordable electric cars that will be based on the existing Model 3 and Model Y, but will adopt elements of a new platform that will make them cheaper. Sources say that such a car will appear on the Chinese market next year, it will be 20% cheaper than the current Model Y.

Image Source: Tesla

Tesla Model Y is not only the brand’s most popular electric car, but at some points the car has become the most popular passenger car in the world, surpassing even internal combustion engine cars in the primary market. As Reuters notes, Tesla’s Chinese division is currently preparing to release a model with the code name E41, which will hit the assembly line in Shanghai next year and will be the brand’s most affordable electric car on the local market.

It is important that the production lines will not need to be significantly modernized to produce a “people’s” version based on the Model Y. The more compact electric crossover will cost 20% less to produce than the Model Y, so Tesla will have a decent reserve for price maneuvering in the competitive Chinese market. Over time, the car will be launched into production in Europe and the United States, but it is not possible to name the exact start date for the new product. At the same time, a six-seater version of the current Model Y may be released on the Chinese market by the end of this year. After the start of sales of the restyled version of Tesla Model Y in China, the company has managed to accept about 200,000 orders, but not all of them are transformed into purchases. The waiting period for ordered cars is stretched to 10 weeks, if we are talking about the all-wheel drive version.