Monday, July 22, 2024
NewsThe new affordable Tesla Model Y will be assembled in China

The new affordable Tesla Model Y will be assembled in China

  • The battery in the base Model Y is a lithium iron phosphate unit.

  • The new vehicle is eligible to both government EV rebates.

  • The base version will be produced at the brands’ most profitable factory.


 

According to Reuters, Tesla has already begun production of its more affordable version of the Model Y destined for the Canadian market at its Chinese factory. Until now, all Tesla vehicles in North America were assembled at the Freemont plant in California, while Tesla’s second production complex will be the place where the Cybertruck pickup, among others, will take shape.

Tesla’s Chinese factory is currently the American brand’s most profitable location, also because it is the largest. Tesla has already confirmed that a new, more affordable variant of its best-selling Model Y crossover will be available in Canada.

This new version of the crossover will drop the two-engine drivetrain in favor of a single engine architecture housed in the rear. The new entry-level model will sell for $10,000 less (in Canadian dollars) than the current most affordable Model Y model. The first examples of this Chinese-assembled series are expected to arrive in the country sometime between May and July.

The production target for North America is said to be nearly 9,000 units for this quarter, a boost that will undoubtedly help the automaker increase its sales figures in its home market.

There is a distinction to be made between Model Y vehicles assembled in North America and those that will make the trip from China. Indeed, the type of battery is different, with the Model Ys assembled in China using lithium iron phosphate (LFP) batteries, as opposed to the more powerful 4680 batteries installed in North American vehicles.

The new electric utility vehicle should in theory be compared to other affordable electric vehicles, with the range of this base Model Y estimated at 394 km. The price of this new economical variant is $59,990 (in Canadian dollars).

Thus, the basic Model Y becomes eligible for both levels of financial incentives, those of the federal and Quebec governments.

The story doesn’t say whether the trip from China is more expensive – or even more damaging to Planet Earth – than the option of using the California factory to supply North America with these “affordable” Model Y deliveries.

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