Tesla China is preparing a "simplified" model, expected to go into production in 2026 | Exclusive from 36Kr

36Kr has learned from multiple sources that Tesla China is advancing two new car projects, internally codenamed E41 and D50, which are the stripped - down versions of the current Model Y and Model 3 respectively.

People familiar with the matter told 36Kr that "some design and verification reports of the new projects are inherited from the current Model Y and Model 3." Currently, both new cars have entered the verification and testing phase.

According to 36Kr, preliminary information from various sources shows that the production time may be in the middle of next year or even later.

36Kr sought verification from Tesla regarding this news. As of press time, no response was received.

Tesla's Chinese factory mainly supplies the Chinese and European markets. Producing simplified models in China can be seen as Tesla's preparation for promoting "simplified" models in the Chinese and European markets.

On October 7th this year, Tesla launched two "simplified" models (Standard) in North America: the Model Y priced at $39,999 (approximately RMB 284,000), and the Model 3 priced at $36,990 (approximately RMB 263,000).

The starting price of the simplified models is $5,000 - $5,500 lower than the previous models. More than 20 configurations have been cancelled or simplified, such as the cancellation of the front through - type light strip, the adjustment of the rear - view mirror changed from electric to manual, the cancellation of the double - laminated glass for the windows, and the seats no longer support electric adjustment.

On October 10th, the simplified Model Y (Standard) was launched on the market websites of Norway, Germany, and Sweden and will be officially launched in November and December this year. The "simplified" models will be €5,000 cheaper than the previous cheapest models.

So far, Tesla will promote the production and sales of "simplified" models in several major global markets.

It can be seen that Tesla's product strategy in the next few years is to conduct simplified development based on existing products, and use its long - accumulated brand reputation to seek sales breakthroughs in the lower - priced market.

36Kr previously reported that Tesla's Chinese team led the R & D of a new "lower - priced Model Y" car. This project is developed in the depop way, that is, without changing the main functions, the product can be quickly launched by simplifying the configuration.

People familiar with the matter once told 36Kr that if the sales fall short of expectations, Tesla is expected to launch this lower - priced model in the second half of 2025.

However, Tesla chose to postpone the "simplified" models and first launch the six - seat model more suitable for the Chinese market.

On August 19th, Tesla China launched the six - seat SUV Model YL. The starting price of this new car is RMB 339,000. The length of the new car is 179mm longer than the Model Y, and the wheelbase is 150mm longer. The interior adopts a 2 + 2+2 six - seat layout.

The delivery of the Model YL started on September 2nd. Although the market's evaluation of its comfort is mixed, Tesla China's total sales in September this year reached 71,000 vehicles, setting a new monthly sales high. Currently, Tesla's official website shows that the estimated delivery cycle of the Model YL has been scheduled until November.

Obviously, the Model YL has been recognized by a certain number of consumers, which is also regarded as one of the core reasons why Tesla has not launched the simplified model in the Chinese market for the time being.

Now that Tesla restarts the production of "simplified" models in China, it is also full of concerns about their sales growth.

In addition, a person close to Tesla's headquarters revealed to 36Kr that Tesla intends to restart the R & D of the NV91 and NV93 projects to create new cars smaller than the Model Y.

36Kr previously reported that the NV91 project is the "new car priced at $25,000" mentioned by Musk. The original mass - production time of this model was August 2025.

However, in February 2024, both projects were halted. People close to the projects told 36Kr that the competition in the low - priced market in China is fierce. Facing the low - priced products of companies such as BYD, Tesla seems to have lost confidence.

Considering restarting the NV91 project this time, Tesla needs to create more chips for future competition.

In the first three quarters of 2025, Tesla's global total sales were approximately 1.2178 million vehicles, a year - on - year decrease of 5.9%. The "simplified" models will be a move for Tesla to break through the situation.

However, Tesla's situation is not as smooth as expected.

After Tesla launched the simplified Model Y and Model 3 in North America, its stock price fell by about 4%, and its market value evaporated by about $65 billion. Whether the $5,000 price cut can bring about sales growth is still unknown, but the "stripping - down and price - cutting" strategy has begun to erode its long - established brand image of technological premium.

In September 2025, Tesla released the "Fourth Chapter of the Master Plan", clearly stating that the company's business focus has shifted from electric vehicles and energy to the fields of artificial intelligence and robotics.

The simplified models reflect such a choice: making subtractions in comfort and decorative configurations, but maintaining Tesla's high - level assisted - driving hardware and retaining the possibility for users to choose to install the FSD full - self - driving function.

That is, a larger number of users brought by the low price will create more data collection terminals for Tesla to strengthen the training of Tesla's self - driving neural network. The increase in the number of users also brings higher imagination space for the subscription rate of FSD.

However, the next - generation technology that the company is betting on is not yet mature and the commercialization process is long, while the automobile business, the main source of cash flow, shows signs of fatigue due to slow product iteration and intensified competition.

How to balance the stability of the automobile business and the investment in high - risk and long - cycle future businesses is a huge test for Tesla at the strategic level.