Tesla launched a new, cheaper version of the Model Y electric crossover in China Thursday. The new model gets less range but will be the cheapest Model Y on sale there.
The compact electric SUV utilizes new batteries supplied by CATL that use lithium iron phosphate chemistry, according to Reuters. The battery design gets less range but is cheaper to produce than Tesla’s traditional lithium-nickel-cobalt-aluminum batteries.
That means that the new “standard-range” Model Y will be good for 525 km (326 miles) of range per charge, according to the local test cycle. The long-range version, by comparison, gets 594 km (369 miles) of range.
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The new model will cost 276,000 Yuan ($42,523 USD). This means that it falls below 300,000 Yuan, so it is eligible for state subsidies. With the incentive, the price of the new Model Y is about 20 percent lower than the long-range Model Y.
Tesla’s sales in China took a serious hit in May. The automaker was criticized for its handling of a possible brake problem and suffered a few PR issues. It looks like sales might be recovering, though, as the company managed to shift 28,138 vehicles in China in June, up from 21,936 in May.
The company previously offered a Model Y Standard Range in the U.S., its biggest market by volume. However, it had a range of less than 250 miles, which Elon Musk called “unacceptably low”, so it pulled it from the market.
