Tesla Introduces The Model Y in China, A Low-Cost Standard-Range Model

In China, Tesla unveiled a new, less expensive Model Y electric crossover on Thursday. The new model has a lower capacity, but it will be the most affordable Model Y on the market.

According to Reuters, the tiny electric SUV uses innovative lithium iron phosphate chemistry batteries supplied by CATL. The battery has a shorter range than Tesla's standard lithium-nickel-cobalt-aluminum batteries, but it is less expensive to build. The new Standard Range Model Y will have a range of 525 km (326 miles) per charge. By comparison, the long-range version has a range of 594 km (369 miles).

The price of the new model is 276,000 Yuan (USD 42,523). This means it is worth less than 300,000 Yuan and hence qualifies for government assistance. The new Model Y is around 20% cheaper than the long-range Model Y thanks to the incentive.

In May, Tesla's sales in China took a significant knock. The automaker was chastised for how it handled a probable brake problem, and it faced some public relations problems as a result. However, it appears that sales are improving, as the company sold 28,138 automobiles in China in June, up from 21,936 in May.

The Model Y Standard Range was originally available in the United States, the company's largest market by volume. Its range, however, was less than 250 miles, which Elon Musk deemed "unacceptably low," therefore it was taken off the market.