As per Chinese news reports, Tesla is reportedly developing a new low-cost variant of the Model Y, internally codenamed E80, priced significantly lower at around 170,000 yuan. This represents a price reduction of approximately 35% compared to the current model range, which is priced between 263,500-313,500 yuan.
During the company’s Q1 2025 earnings call last month, Tesla officials dropped strong hints that the ‘affordable models’ in the company’s business plan this year would be pared-down versions of the Model 3 and Model Y, while retaining their form factors.
To achieve cost savings, Tesla is reportedly eliminating or downgrading several features. Here’s what’s expected to change in the Tesla E80:
1. Smaller 50 kWh Battery
Tesla will equip the E80 with a smaller 50 kWh battery pack (down from 62.5 kWh). This will have an impact on the range performance (currently 369 miles CLTC), but reducing vehicle weight and employing smaller wheels would help in partially offsetting the range loss.
2. Reduced Wheel Size
The standard 19-inch rims will be replaced with smaller wheels, enhancing efficiency but slightly compromising appearance and possibly comfort.
3. Simplified Ambient Lighting
Tesla will either remove the ambient lighting completely or restrict it to basic white illumination, compromising interior luxury for affordability.
4. Single-layer Windows
The E80 will revert from double-layered insulated windows to single-layer glass, potentially increasing cabin noise levels.
5. Removal of Panoramic Glass Roof
The panoramic glass roof featured in higher-spec models will be replaced with a solid, traditional roof to cut production costs.
6. No Rear Seat Entertainment Screen
The rear-seat infotainment screen will be omitted entirely to reduce expenses. This was the layout on both the sedan and the crossover before their recent updates.
7. Fabric Seats without Heating & Ventilation
Seats will be downgraded to basic fabric materials without heating or ventilation features, reducing comfort, cost, and weight.
8. Manual Tailgate
A manually operated trunk will replace the automatic powered tailgate, sacrificing convenience to lower the vehicle’s overall cost.
While the elimination of these features would make the Model Y feel less premium, it would help refocus public attention on Tesla’s lineup, lower monthly payments for buyers, and fill up production capacity. The launch timing for the Tesla E80 could be as early as later this year.
An automobile engineer by training, I’ve analyzed the global car market since 2005, with a keen focus on EVs since 2008. My journey in online automotive publishing spans 17 years, during which I have reviewed cutting-edge automotive technologies and interviewed leading global CEOs and vehicle developers.
