Tesla plans lower-cost Model Y production in Shanghai - Reuters

Published 14/03/2025, 08:06
© Reuters

Investing.com -- Tesla (NASDAQ:TSLA), the U.S. electric vehicle manufacturer, is planning to produce a lower-cost version of its best-selling Model Y in Shanghai, according to Reters. This move is seen as a strategy to regain lost market share following a price war in China, Tesla’s second-largest market.

The new model is being developed under a project codenamed "E41" and will be built using existing production lines. Mass production is set to commence at Tesla’s largest factory by output in 2026, two of the sources stated.

The upcoming vehicle will be smaller and at least 20% cheaper to manufacture than the updated Model Y that was launched late last year, according to two of the insiders. The current Model Y, a mid-sized SUV crossover, has a starting retail price of 263,500 yuan ($36,351).

The majority of the Shanghai-produced Model Ys will be sold in China to maintain market share, according to the report. The model will also be manufactured in Europe and North America, although no specific timeline was provided.

Earlier this year, Tesla CEO Elon Musk announced that the company would introduce lower-cost models in the first half of 2025. However, he did not provide further details on the cost reduction, pricing, size, or specifications of these models.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.