Tesla expected to launch lower cost, no frills Model Y in coming months

News from China via social media suggests that the much-anticipated cheaper Tesla Model Y is less than three months away, with an expected launch in July.

Some key details of the codenamed E80 model have surfaced. It reduces a number of comfort features to bring the price of the current Model Y to the equivalent of less than $A41,000 in the China market.

The new Model Y will include fabric seats without ventilation. This is not the first time we have seen this change, as a previously, a more affordable Model 3 variant in Mexico also had similar seats.

There is a single-colour ambient light on the inside, unlike the current Model 3 and Model Y, which feature up to 256 colours.

The sound system will also have fewer speakers than the standard Model Y. It’s unclear what the cheaper variant may see, but it’s likely to be a seven or nine-speaker setup.

For reference, the current models come with 15 speakers and one subwoofer in the AWD variant and nine speakers in the base RWD variant.

Moving to the rear of the car, the motorised boot lid will be non-powered, meaning that it will have manual operation available instead.

Regarding battery specs, a slightly smaller 55 kWh battery pack will be provided on the cheaper version, which might have a lower range compared to the 466 km seen on the spec sheet of the current RWD variant.

The cheaper models have been in the cards for a while, and multiple company earnings presentation decks included commentary on them.

One recent update said: “Preparations remain underway for our offering of new vehicles – including more affordable models – which we will begin launching in the first half of 2025.”

Aside from the above specs, little is known about what the affordable model may exclude to cut costs. The company has previously shared some details on what could be driving these costs down, hence a cheaper price. 

At its Q3 earnings call in October, Tesla’s presentation deck that accompanied the call stated: “These vehicles will utilize aspects of the next-generation platform as well as aspects of our current platforms and will be produced on the same manufacturing lines as our current vehicle line-up.”

Earlier this week, news from China also hinted at the imminent production of a three-row, seven-seater Tesla Model Y with an extended wheelbase. Not much is known about that model, but more will likely surface in the coming weeks.

With a rumoured July launch, the more affordable Model Y will likely see tens of thousands of orders by the end of the year, helping Tesla improve its vehicle delivery numbers in 2025 and attract new buyers to the brand.

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