After launching in the US and Europe, Tesla is reportedly developing two simplified versions of its Model Y and Model 3 vehicles in China, the local media outlet 36Kr reported Monday.
Citing people familiar with the matter, the outlet said the projects are internally codenamed E41 and D50.
Additionally, both models are said to have already entered the verification testing stage.
Production of the two new models could begin around the middle of next year or later, 36Kr said.
The report said Tesla’s global strategy in the coming years appears to focus on developing simplified versions of existing products, leveraging its brand reputation to gain volume in lower-priced market segments.
Tesla’s approach follows the launch of “simplified” Standard versions of the Model Y and Model 3 in North America earlier this month.
As reported earlier this Monday, the company is ramping up production at its Shanghai Gigafactory, VP Grace Tao announced on social media.
The Standard variants in the US saw their prices reduced by about $5,000 when compared to the — now called — premium versions.
In its domestic market, the new Model 3/Y Standard trim removed or simplified more than 20 features, including the AutoPilot, glass roof, front light bars, electric mirrors, laminated glass, and power seat adjustments.
In Europe, where FSD is not yet available, Tesla kept the Autopilot funcion.
36Kr said Tesla China had earlier led the development of an even lower-priced Model Y using a “depop” method—retaining key functions while removing nonessential configurations for a faster rollout.
That project was delayed, with the company instead prioritizing the launch of a six-seat Model YL designed for Chinese consumers.
Introduced on August 19 at a starting price of 339,000 yuan ($46,500), the Model YL has a 2+2+2 six-seat layout.
After beginning deliveries of the new variant on September 2, Tesla sold 71,000 vehicles in China that month, its highest monthly total this year.
36Kr said the strong performance of the Model YL was one of the key reasons Tesla postponed the simplified version’s domestic debut.
Even so, the company remains cautious about whether simplified models could significantly boost sales once production resumes in China.
The report also said Tesla is considering restarting two smaller-vehicle programs, internally called NV91 and NV93, aimed at producing models smaller than the Model Y.
The NV91 project corresponds to Elon Musk’s previously mentioned $25,000 car, originally slated for mass production in August 2025, but both programs were suspended in February 2024.
Tesla sold 71,525 vehicles in China in September, its second-highest monthly totalin 2025, according to data released Monday by the China Passenger Car Association (CPCA).
The Shanghai plant exported 19,287 vehicles in September, up 19.6% year-on-year but down nearly 26% from August.
