Tesla is reportedly gearing up for another expansion of its product lineup in China, with plans to launch new simplified versions of the Model 3 and Model Y by mid-2026, while also reviving its long-awaited NV91 project — the compact, affordable EV often referred to as the $25,000 Tesla.
According to a new report from Chinese outlet 36Kr, the projects are internally codenamed E41 (for the Model Y) and D50 (for the Model 3). Both vehicles are described as stripped-down variants of the existing models, with simplified configurations aimed at reducing production costs and prices.
According to the report, which cited sources familiar with the matter, said the projects have already entered the verification and testing stage, with production expected to begin in mid-2026 or later.
Naturally, news of these stripped-down variants drew comparisons to the recently launched Model 3 and Model Y Standard in the United States and Europe. Those vehicles are priced at US$36,990 and US$39,990 respectively, around US$5,000 less than the previous entry-level trims.
The cost reduction was achieved by removing or simplifying more than 20 features, including manual mirrors, non-powered seats, standard glass windows, and the absence of a front light bar. However, some say too many features were removed or simplified, particularly from the Model Y, to keep them as attractive choices in their price brackets.
It is unclear how these Chinese versions will differ from their counterparts on the other side of the world, but presumably there will be some differences to cater to the different markets.
The report also revealed that Tesla may revive the previously shelved small-car project, internally known as NV91. The NV91 corresponds to Elon Musk’s long-rumored $25,000 Tesla, initially planned for mass production in 2025 before being shelved in early 2024 in favour of the dedicated robotaxi, Cybercab, referred to as NV93.
Editor’s note: This article has been updated to clarify that NV91 is the $25K Tesla, and NV93 is the Cybercab.
