Tesla's China Prepares 'Simplified' Model, High-Performance Plastic Applications Worth Anticipating

Specialize in VisionOctober 14th cited Tesla China is advancing two new car projects, internally codenamedE41 and D50 are the downgraded versions of the current Model Y and Model 3, respectively.

This trend marks a significant adjustment in Tesla's product strategy in China, with the core goal of...The "simplified version" models achieve broader market coverage while relying on a plastic strategy for lightweighting and cost optimization. Currently, the two new vehicles have entered the validation testing phase, with production expected around 2026. Specific timelines will be dynamically adjusted based on market feedback and supply chain maturity.

Source: Tesla

Simplified model's underlying logic: de-contenting and price reduction with configuration restructuring

Zhuanshu Shijie learned that, according to informed sources, some design and verification reports of the new project will be based on the current version.The mature architecture of the Model Y and Model 3 achieves cost control through "de-redundancy." For example, the simplified version of the Model Y launched in the North American market (priced at $39,999) and the Model 3 (priced at $36,990) have reduced their prices by $5,000 to $5,500 compared to the original models. This was achieved by eliminating over 20 features, including the front light strip, electric mirror adjustment, and double-layer laminated glass, while retaining high-level driving assistance hardware and the FSD upgrade option. This strategy of "hardware reduction + software flexibility" not only lowers the entry price but also reserves space for future feature upgrades.

In the Chinese market, Tesla's simplified models will face a more complex competitive environment.In September 2025, Tesla China launched the six-seater version of the Model YL (starting price of 339,000 RMB), which has validated the market's acceptance of differentiated products. Despite mixed reviews on comfort, total sales in September reached 71,000 units, setting a new high for the year, with delivery schedules extending to November. This achievement confirms Tesla's ability to "precisely target market segments" and provides confidence for the introduction of simplified models. However, there are still concerns within Tesla about the sales growth of simplified models: after the launch of the simplified model in North America, Tesla's stock price fell by 4%, with a market value loss of approximately $65 billion, reflecting the capital market's concerns over the "reduced features and lowered price" strategy eroding the technology premium.

Deep Layout of Plastic Strategy: Comprehensive Penetration from Interior to Structure

Tesla's plastic strategy is not an isolated existence, but rather a core pillar of its overall lightweight strategy. Taking seats as an example, Tesla adopts...Ultraleather synthetic polyurethane coated fabric (supplied by Ultrafabrics) achieves both environmental and economic goals while simulating the texture of leather. While some car owners question the durability and choose to retrofit with genuine leather seats, Tesla remains committed to promoting synthetic leather, which aligns with the transformation direction of mainstream automakers such as General Motors, BMW, and Mercedes-Benz. On the supply chain side, Mitsui Chemicals is expanding the production capacity of olefin-based thermoplastic elastomers "MILASTOMER" in China, while companies like Dow Chemical, KRAIBON, and Evonik are also promoting the application of thermoplastic elastomers in automotive interiors.

Deeper strategies are reflected in the replacement of metal materials with engineering plastics. In components such as car doors, door handles, and bumpers, Tesla uses...PC (polycarbonate) combined with fiberglass/nylon composites reduces weight while enhancing strength. For example, the battery pack of Model Y is wrapped in PA66 nylon foaming material, forming an energy-absorbing layer akin to a "red ocean" that protects the cells and improves sealing performance. The A-pillars and B-pillars of the body-in-white use PA66 hollow partitions, which are foamed and filled during the electrophoretic baking process, effectively blocking noise and enhancing body stiffness. In the field of humanoid robots, Optimus-Gen2 achieves a weight reduction of 10 kilograms through the use of PEEK (polyether ether ketone) material, which has a strength eight times that of aluminum alloy and a density only one-third of it, making it the ultimate solution for lightweighting.

Plastic Strategy: Industrial Extension and Talent Deployment

Tesla's plastic strategy has extended to multiple segments of the supply chain. In the charging equipment sector, the third-generation Tesla charging gun and home charging stations both usePC materials, connectors, and high-voltage connectors use high-performance plastics to ensure electrical performance and weather resistance. In battery pack manufacturing, Jun Chuang Technology produced PA66 nylon battery covers for Tesla in 2022 (valued at approximately 280 RMB), showcasing the high value-added application of engineering plastics in structural components. Additionally, Tesla is forming a team of automotive plastic specialists, with recent job openings including "Plastic Manufacturing Engineer," "Assistant Manager of Plastic Production Engineering," and "Giga Factory Plastic Tools and Molds Supervisor," highlighting its focus on innovation in plastic processes.

However, the widespread use of plastics also brings safety challenges. Frequent issues such as spontaneous combustion of new energy vehicles and brake failures prompt the industry to reassess the safety of materials. Tesla needs to enhance the safety factor of plastics through scientific modification methods, such as optimizing energy transfer paths during collisions and constructing multiple energy-absorbing structures. At the same time, attention must be paid to the safety of software systems and the reliability of braking systems to ensure that lightweight design does not compromise overall safety.

Epilogue:The Global Chessboard and Strategic Balance of Simplified Model Vehicles

Tesla's simplified model is not only a price strategy adjustment but also a key move in its global strategy.In the first three quarters of 2025, Tesla's global sales reached approximately 1.2178 million units, a year-on-year decrease of 5.9%. The simplified version of the models has become an important strategy for breakthrough. Through the "simplified version + plastic strategy," Tesla is expected to expand its market share and collect more user data while maintaining its technological premium, providing support for the training of the FSD autonomous driving neural network. However, this strategy needs to balance the stability of the automotive business with investments in high-risk future projects—the company's focus has shifted to the fields of artificial intelligence and robotics, and the automotive business, which is the main source of cash flow, needs to maintain competitiveness.

From an industry trend perspective, Tesla's plastic strategy will drive the lightweighting process in the automotive industry, but domestic manufacturers need to be cautious.The misconception of "lightweighting for the sake of lightweighting." While pursuing energy efficiency improvements, safety must be regarded as an unwavering premise. The dual goal of "lightweighting + safety" can be achieved through scientific material modification and structural design.