Recently, uncamouflaged spy photos of the affordable version of the Tesla Model Y have been leaked online, matching a previously exposed set of camouflaged test vehicle photos and videos. The affordable Model Y, internally codenamed E41, is expected to have significant reductions in features compared to the current Model Y, in order to lower the market price. The new vehicle is expected to be launched in the fourth quarter.
From the spy photos, it can be seen that the affordable Model Y has removed the continuous front light design and will no longer use the split headlamp style, retaining only two simple, elongated headlights. The front bumper still features a continuous air intake. The new car continues to use the five-door design of the Model Y, but it appears more compact in size. The rear lights remove the diffuse car light design but retain the continuous taillight style, giving the rear a simpler look. The new car will feature smaller 18-inch wheels, the electric-folding side mirrors are replaced with manual ones, and the adjustable suspension is replaced with a fixed one. Additionally, the panoramic glass roof is replaced with a regular metal roof, and there is no sunroof. While this may solve the problem of excessive sun exposure with the panoramic roof in summer, it sacrifices the vehicle’s openness and visibility.
In terms of the interior, there are also several cost-cutting measures. The car still uses a floating central touchscreen, with a turn signal stalk added behind the steering wheel. However, the gear shift stalk remains. The central console is changed to a central tunnel, and the panoramic roof and rear seat screen are removed. The rear legroom has been reduced, the seat side wings are made of fabric, and the number of speakers is also reduced. The welcome lights and ambient lighting are removed, leaving only the footwell lighting. The rear air conditioning vents are also eliminated, and the electric seat adjustment function will be limited.
For the powertrain, the new car will have both rear-wheel-drive and all-wheel-drive versions, but the motor parameters may differ from the current Model Y. Features such as tire pressure monitoring are removed, and the suspension system might be downgraded. The most notable cost-cutting measure could be a reduction in battery size, which may result in a decrease in range.
The affordable Model Y is generally expected to be priced around 200,000 RMB in the Chinese market, which is a significant reduction compared to the current rear-wheel-drive version priced at 263,500 RMB and the all-wheel-drive version at 313,500 RMB. However, the final pricing still needs to be confirmed by the official announcement. Tesla’s main competitors in this segment are primarily from emerging brands, such as XPeng G7, Leado L60, Zeekr 7X, and Wuling M5, all of which are pure electric mid-sized SUVs.
The introduction of the affordable Model Y will somewhat change Tesla’s current product lineup. Since its domestic production, Tesla has only launched the Model 3 and Model Y in China, with prices mainly concentrated in the 200,000-300,000 RMB range. Initially, there were fewer local brands in this market, allowing Tesla to seize the first-mover advantage in China. However, as more brands have entered this market, not only are their prices lower than Tesla’s, but they also offer more features, putting increasing pressure on Tesla in the domestic market. The launch of the affordable Model Y could potentially boost Tesla’s sales in China, as price is still a key factor influencing consumer purchasing decisions. Tesla’s previous models may have been out of reach for many consumers, but the affordable Model Y brings them one step closer to owning a Tesla. However, betting on the “simplified version” may not be a long-term solution. While Tesla’s market share may increase, its profits will likely decline, and the vehicle’s configuration will have more shortcomings, making the gap with competitors even more apparent. Tesla will need to find ways to maintain its price advantage while improving the overall competitiveness of its products to meet the increasingly diverse demands of consumers.
