Key Takeaways
1. Tesla is set to launch more affordable versions of the Model Y and Model 3 in China, customizing features to meet local preferences.
2. The new Standard trims may differ significantly from the US versions, with changes in hardware and design to compete with local rivals like BYD.
3. Tesla is reviving projects for a $25,000 vehicle, informally called Model 2, which will be a smaller, budget-friendly option.
4. The Model 2 is expected to launch by Q4 2026, featuring a 54 kWh battery and AI5 FSD hardware.
5. Tesla’s strategy includes introducing Standard trims to maintain profit margins before focusing on mass production of the Model 2.
Tesla is getting ready to introduce more affordable versions of the Model Y and Model 3 in its most competitive market, similar to the Standard trims it revealed in the US.
Local Adaptation
However, the company won’t just roll out a Model Y Standard in China; it plans to customize the hardware features and comfort designs to fit local preferences. In the US, Tesla removed over 20 features and options to achieve the under-$40,000 price tag for the Model Y Standard, including light bars and changes to the battery capacity. Given the wide range of cheaper and better electric vehicles available from Tesla’s main rival BYD and others in China, a simplified Model Y might look quite different from the US Standard trim.
New Trims and Developments
This could explain why Tesla is only set to launch the basic Model Y and Model 3 trims there next year. They are expected to include AI5 FSD hardware to help distinguish them from competitors. In addition to the E41 and D50 trims that represent the Model Y and Model 3 Standard versions for China, insiders say Tesla is also reviving the NV91 and NV93 projects. These are variations of the anticipated $25,000 Tesla vehicle, informally known as the Model 2, which were initially developed in the US under the Project Redwood name.
The $25,000 Model
The NV91 (which means “new vehicle”) was reportedly in a very advanced stage of development as an affordable option, designed similarly to the Model Y crossover but featuring a smaller battery and more compact size. This $25,000 model was put on hold while Tesla shifted its focus to launching the Cybercab and Robotaxi platforms, as well as making the Model Y and Model 3 more budget-friendly by removing certain features and comforts.
At that time, Tesla’s chief designer, Franz von Holzhausen, mentioned that the speculation about Tesla abandoning its $25,000 Model 2 is highly exaggerated, saying to “stay tuned.” According to Elon Musk, the upcoming Model 2 is expected to be “smaller, to be clear,” equipped with a 54 kWh battery that should provide around 250 miles of range, along with next-gen AI5 FSD hardware.
Future Launches
This likely indicates that the Model 2 could launch as early as Q4 2026, coinciding with Tesla’s plans to start installing HW5 computers and cameras in its vehicles on a large scale. This aligns with earlier rumors that the much-anticipated $25,000 Model 2 would not be available until 2026, after Tesla has updated all its other models in 2025 and introduced Standard base trims to maintain margins before embarking on its major experiment with its first mass-market electric vehicle, which is planned to produce four million units of.
Source:
Link
Leave a Reply