Pursuing Tesla's Target Sales Rumored To Present Affordable Model Y In China

The latest Tesla Model Y. (Doc. Tesla)

JAKARTA - Competition for electric vehicles in China is currently getting faster, with various brands presenting the latest model at a fairly affordable price.

Seeing this increasingly fierce competition, according to a report from Carnewschina, quoted Monday, March 17, Tesla's team in China will reportedly spearhead the development of a more affordable version of the Model Y SUV, which has codename E41.

Local media 36kr also revealed that the vehicles that Tesla will present later will largely maintain the core components of the Model Y, such as batteries, powertrains to chassis.

"The internal strategy focuses on rapidly launching the product by simplifying configurations while maintaining important functions," reads the 36kr report.

The launch schedule for the Model Y at a lower price is also reported to be seeing the market performance of the updated Model Y. If the order does not meet expectations, Tesla has the potential to launch a more affordable variant in the second half of this year.

Referring to previous news, the updated Model Y in China had collected 200,000 orders before deliveries began last month, but the initial shipping figures were only 6,000, suggesting acceptance may not be too enthusiastic about the model.

According to the source, the cheaper Model Y will have the code name E41 and a price tag of 20 percent lower. The model will initially be produced at the Tesla Gigafactory in Shanghai. Later, this model will be assembled in the US and Germany.

This strategic maneuver occurred because Tesla experienced a significant decline in sales in China. In February 2025, the company's total sales fell by 49 percent year-on-year to 30,688 units, marking its worst performance since July 2022. In particular, Model Y sales experienced a dramatic decline of 77 percent to only 8,006 vehicles.