Source: Tesla

In the middle of March, several local news outlet revealed that Tesla is planning to release a “stripped-down” version of the newly launched Tesla Model Y Juniper in order to cope with the intense market competition in China.

Just today, more relevant details were released. First and foremost, this low-cost Model Y was previously reported to us an internal codename “E41”. However, a new codename “E80” has also surfaced, which could be referring to the anticipated Performance variant of the Model Y.

For now, let’s refer to the affordable Model Y as “E41”.

The Model Y E41 is reportedly launching at a significantly lower price, between 150,000 to 170,000 RMB, or equivalent to roughly 20,500 to 23,300 USD.

For comparison, the current 2025 version Model Y Juniper rear-wheel drive starts at 263,500 RMB (36,200 USD) and the all-wheel drive starts at 313,500 RMB (c. 43,000 USD).

Pricing the E41 at 150,000 RMB would be a 43% price reduction over the current entry-level Model Y.

The most affordable Tesla vehicle you can buy in China today is the Model 3, which starts at 235,500 RMB (c. 32,300 USD).

So how could Tesla shave-off 41% of the price?

Tesla will reportedly replace the current 62,5 kWh battery pack of the RWD Model Y with an even smaller 50 kWh battery pack.

Despite that, the lighter battery weight coupled with smaller rims (previously 19 inch by default) will yield a similar cruising range to that of the Juniper RWD (593 km CLTC).

Moreover, the E41 will retain the same drive motor with maximum power of 220 kilowatts.

Tesla will also reduce costs elsewhere, including replacing the side windows with a single layer glass that would run from the A-pillar to the C-pillar.

Source: Tesla

The E41 will also remove the panoramic glass sunroof, the 8-inch rear touchscreen, seat ventilation and heating, reduce the number of speakers and change to a manual tailgate.

While the exterior design will not be significantly different from the Juniper, we already know that the side windows will be a single layer of glass and default rims size will be reduced.

Lackluster sales warrant a cheaper variant

The much anticipated Tesla Model Y Juniper began deliveries on February 26, 2025 and saw a gradual climb in weekly deliveries from 6,700 in the 9th week of 2025 (Feb. 24 - Mar. 2) to 14,600 in W13 (Mar. 24-30).

The new model launch had undoubtedly an exceptional month, delivering 48,189 Model Y in China alone, compared to 8,006 units in February.

However, that momentum dropped sharply to 2,500 units in W14, 3,900 in W15, and 4,000 in W16 (Apr. 14-20).

Previous reports said that the timing of launch for the more affordable Model Y will depend on the sales performance of the Juniper. If that holds true, we will be seeing a new Tesla very soon.