Tesla's China website today launched the lower-priced Model Y Standard Range version, which is available for pre-order immediately, with deliveries expected to begin in August.

The model's post-subsidy starting price is RMB 276,000 ($42,650), lower than the previous lowest-priced model at RMB 347,900.

It is priced at RMB 291,840 before subsidies, which meets China's requirement that subsidized new energy vehicles be priced under 300,000 yuan. The subsidy for this model is RMB 15,840.

Models like Nio that support battery swap are eligible for subsidies at any pricing.

It is a single-motor rear-wheel-drive version with a 0-100 km acceleration time of 5.6 seconds and a top speed of 217 km/h.

It has a range of 525 km. Tesla did not specify its battery type, though we suspect it may use CATL's lithium iron phosphate battery.

Caixin.com later quoted sources familiar with the matter as saying that the model is equipped with lithium iron phosphate batteries supplied from CATL. Tesla salespeople also confirmed this, the report said.

Previously Tesla offered the Model Y Long Range version in China for RMB 347,900 with a ternary lithium battery supplied by LG.

The Performance version shown on its official website is priced at RMB 377,900, although delivery is expected in the third quarter.

In early October last year, Tesla began using lithium iron phosphate batteries on the entry-level Model 3 produced at the Shanghai Gigafactory and lowered the price by 41,900 yuan from RMB 291,800 yuan to 249,900 yuan.

Lithium iron phosphate batteries have the advantages of high operating voltage, high energy density, long cycle life, good safety performance, low self-discharge rate, and no memory effect.

Lithium iron phosphate batteries is gradually replaced by ternary lithium batteries around 2015 because of the low energy density, overlapping with China's policy reasons.

However, in recent years, lithium iron phosphate battery technology has gained progress, battery stability brings safety and lower costs, and other characteristics, but also made it is increasingly used by more and more car companies.