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 of range per charge, according to the local test cycle. The long-range version, by comparison, gets 594 km of range. The new model will cost 276,000 Yuan (US$ 42,523). 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.
