The new Tesla’s affordable Model Y has been in the news for several days now. Each day passing, new leaks and rumours are popping out, showing the immense anticipation of the new variant. According to leaked sources, the new model will feature a significantly smaller 50 kWh battery pack, representing a 20 percent reduction in size compared to the current 62.5 kWh pack in the Standard Range model, yet still offering a decent driving range. The model seems to be marketed as an attempt to expand Tesla’s market, particularly in price-conscious places like China and parts of Europe.
Reduced Battery Size, Lower Entry Price
The new Model Y variant is also expected to come with a 50 kWh battery, which is quite a significant decrease compared to the existing Standard Range, 62.5 kWh. The downsizing is likely to render Model Y accessible to more customers. Although Tesla is yet to release the pricing officially, analysts in the industry anticipate a significant reduction in the base price and subsequently, the model may turn out to be one of the cheapest Teslas available in howl.
Battery packs are one of the most costly components of EVs, and minimizing physical size can save a lot of money. Tesla seems to be willing to take an intelligent gamble by compromising range by a little bit so that it can reduce the overall price of the vehicle.
$TSLA 🇨🇳 According to leaks, the affordable Model Y will have a reduced battery capacity of 50kWh (down from 62.5kWh), with a CLTC range lowered to 480km 😳 pic.twitter.com/fqhD5lIWMj
— TCMesla (@TCMesla) July 31, 2025
Driving Range: Modest Yet Competitive
In spite of the smaller battery sizes, the new Model Y still lists a CLTC (China Light-Duty Vehicle Test Cycle) range of 480 km. This is a good number considering the relaxed testing standards of China, but when converted to the more demanding EPA testing cycle utilized in the US, it works out to 240-250 miles. In Europe, it is estimated that the WLTP (Worldwide Harmonized Light Vehicles Test Procedure) rating is about 370380 km.
These range figures are competitive for commuting every day and for going on short trips, especially to customers who are mostly urban or already have a second vehicle in the house. As a point of comparison, the Standard Range Model Y now has an EPA-rated range of approximately 260 miles on a 62.5 kWh pack, showing once again that Tesla has managed to make improvements to efficiency even when using a smaller battery.
What This Means for the EV Market
These modifications indicate that Tesla wants to reach a smaller price range to compete with the middle-level electric vehicles and take a larger market portion of the mass one. Tesla has yet to officially announce prices or launch dates, but the stripped-down features suggest that it could be producing a model much cheaper than anything currently offered by Tesla.
As the world is fast adopting the usage of electric vehicles, there is also an emerging trend of affordability becoming a significant factor when deciding on an EV purchase. By launching a cheaper, but stripped-down version of Model Y, Tesla would introduce the company to a wider audience, which values the basic, improved performance and the range more than the luxury features.
The plan resembles the one used by Tesla in the case of the Model 3, which was also launched as a low-cost Standard Range Plus product after the luxury version was released.
