EV

Tesla to launch 20 percent cheaper Model Y in China

  • Tesla is slashing the price of the Model Y
  • The cost is set to be 20% less to produce
  • They will be rolled out in 2026, starting in China

Published on Mar 14, 2025 at 6:53 PM (UTC+4)
by Grace Donohoe

Last updated on Mar 14, 2025 at 9:55 PM (UTC+4)
Edited by Kate Bain

Electric vehicle giant Tesla is set to launch a Model Y that will be 20 percent cheaper in China.

This comes as the US-based company wants to defend its share of the market.

The cars are known worldwide for their smart features, including Self-Driving Mode and their flashy cabin technology.

They are set to be rolled out in 2026.

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When thinking of electric vehicle brands, Tesla is sure to spring to mind.

Since the first ever Roadster release, the company has shown others how to succeed in the sustainable world.

One Model S even has the fastest ‘tiny house’ in the world on its roof.

Not forgetting this Cybertruck that powers a $25,000 house.

But all that power comes with added expense.

Man from Oklahoma says his cheap Tesla Model S broke so bad you won't believe the cost to repair it
Wikimedia Commons

So, Tesla came up with a clever – and generous – solution.

The company decided to slash prices by 20% in China

Yes, a whole 20 percent.

Since the Model Y is Tesla’s best-selling vehicle, the project, known under the codename of ‘E41’, means that a new version will cost 20% less to produce than the Model Y that was rolled out last year.

What does this mean?

Well, it means that the cheaper Tesla will be sold in China to defend Tesla’s market share before being rolled out in Europe and North America, too.

Tesla to launch 20% cheaper Model Y in China
Photo by Makara Heng Pexels

Currently, in the US, a new Model Y starts at $46,000.

But, according to Reuters, the Model Y, is ‘a mid-sized SUV crossover, [that] retails from 263,500 yuan,’ which is around $36,351.

What featured does the Tesla Model Y have?

Tesla says that the this Model Y comes with a newer suspension alongside wheels and tyres – which means rides are smoother.

It also comes with Full – albeit supervised – Self-Driving Mode and front-facing cameras.

Seriously, what doesn’t this EV have?

The cheaper models are set to be smaller, too, with ‘mass’ production beginning in 2026.

So, make sure you set your alarms, people, as they’re sure to sell out quickly.

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Grace started her career writing about the weird and wonderful for the international press. She's covered everything from lifestyle to sports and hard news and now finds herself pursuing her main interest - cars. She's loved cars from a young age and has a keen interest in luxury travel too.