Tesla Developing Budget-Friendly Model Y 'E80' in China

Tesla Inc. is working on an affordable version of the popular Model Y crossover SUV in China. This new model, dubbed the ‘E80,’ will be a toned-down version of the standard Model Y, featuring several key omissions to reduce costs.

Features of the Model Y ‘E80’

The ‘E80’ will reportedly have:

  • A smaller 50-55 kWh battery
  • Smaller wheels
  • Fabric seats without ventilation
  • No rear display

These changes are expected to significantly reduce the production cost of the vehicle, making it more accessible to a wider range of consumers.

Release Date and Pricing

The Model Y ‘E80’ is expected to be released in the latter half of 2025 or sometime in 2026, depending on the performance of the new Model Y in China. The pricing for this model is estimated to be around CNY 150,000-210,000 (approximately $20,500-$28,800).

Background and Context

This announcement comes after Tesla shared plans to release more affordable models in 2025. The company has a history of releasing affordable trim levels for its models, including a cheaper RWD LR (Long Range) version of the Cybertruck with reduced features. Tesla has also recently introduced new promotions for its entire line-up in the US, including free FSD transfers, in an effort to boost sales.

Impact on the Market

The introduction of the Model Y ‘E80’ is expected to have a significant impact on the electric vehicle market, as it will provide consumers with a more affordable option for a high-quality crossover SUV. With its reduced features and lower price point, the ‘E80’ is likely to appeal to a wide range of buyers, from budget-conscious consumers to those looking for a reliable and efficient vehicle for daily use.

Current Market Status

As of now, Tesla’s stock price is $284.95 on the NASDAQ. The company’s efforts to introduce more affordable models and promote its existing line-up are expected to have a positive impact on its stock performance in the coming months.