Tesla, a pioneer in the electric vehicle market, is preparing to fulfill its long-promised commitment to an affordable EV. Instead of launching an entirely new model, the company is opting for a stripped-down version of the current Model Y. According to recent reports from China, this new version—codenamed “E80”—will feature simpler specifications and a lower price point.
The E80 Model Y will reportedly be equipped with a battery capacity of 50 to 55 kWh, indicating a shorter driving range compared to the standard Model Y. While the launch is expected in the second half of 2025, this timeline could shift depending on how well the current Model Y performs in terms of sales. If demand remains strong, Tesla may delay the release of the more economical version.
To reduce costs, Tesla is said to be significantly simplifying the vehicle's features. The E80 is expected to come with smaller wheels, single-pane side windows, no rear passenger screen, a basic sound system, and monochrome interior lighting. Other cost-cutting measures may include fabric seats without heating or cooling functions and a metal roof instead of glass.
As for pricing, estimates vary. Some sources suggest the E80 might cost between 150,000 and 170,000 yuan (roughly $20,500 to $23,300), while others point to a higher range of 190,000 to 210,000 yuan ($26,000 to $28,800). By comparison, the current Model Y in China is priced between 263,500 and 313,500 yuan ($36,160 to $43,000), making the new version a much more budget-friendly option.
Although Tesla has not officially confirmed these details, the strategy aligns with its recent move for the Cybertruck, where a simpler RWD version was introduced to boost sales. A similar approach for the Model Y—and potentially even the Model 3—seems increasingly likely.