Tesla is set to produce a lower-cost version of its Model Y electric vehicle with the aim of regaining market share in China, its second-largest market, Reuters has reported.
Citing three sources, the news outlet reported that the American EV brand is developing the lower-cost models under the codename ‘E41’, and this is to be built on existing production lines. Mass production for this version of the Model Y is set to commence in 2026 at its Shanghai plant, according to the report.
The model reportedly set for production will be smaller than the Model Y and cost at least 20% less to produce that the ‘Juniper’ facelift that made its official Malaysian appearance in February this year. Model Y production from the Shanghai plant – the brand’s largest by output volume – will be sold mainly in China for the brand to regain share in this market, Reuters quoted a source as saying.
This lower-cost version of the Model Y ‘Juniper’ will also be produced in Europe and North America, the source said, though the time frame for this to take place was not mentioned.
Previously, Tesla stated in April 2024 that cheaper models are in the making, and are set to be launched before the second half of this year. While cost reduction is the goal, the upcoming models will not be built on ‘unboxed’ manufacturing strategy and instead use current manufacturing lines and share aspects with current platforms; the latter assertion was reiterated in the latest report.
Sold in Malaysia in two variants; the Rear-Wheel Drive from RM195,450 and the Long Range All-Wheel Drive from RM242,450, the 2025 Model Y brings a restyling that brings it closer in line with brand stablemates the Cybertruck and Cybercab. A full width light bar with slimmer headlamps feature in front, while the rear gets another full-width setup using what Tesla calls the world’s first indirect tail light.
The base RWD does 0-100 km/h in 5.9 seconds and a WLTP-rated range of 466 km, while the Long Range AWD is quicker on the sprint measure to the tune of 4.3 seconds, while range is 551 km (WLTP). Both are capped to a top speed of 203 km/h.
Inside, the ‘Juniper’ Model Y brings updates from the Model 3 facelift, including a larger 15.4-inch infotainment touchscreen, customisable ambient lighting, ventilated seats and an eight-inch rear touchscreen on the back of the centre console.
Also on are all-around double-glazed acoustic glass and revised body castings for a quieter ride, UV-reflecting silver coating for the panoramic glass roof, and power-reclining rear seats.
GALLERY: 2025 Tesla Model Y Long Range AWD facelift in Malaysia
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