In 1957–1961, the Kharkiv plant "Electrotyazhmash" and Malyshev Factory designed a new single-unit locomotive with 50% more power than a single TE3 unit and only a slightly greater mass.

Only small numbers of the TEP variant were produced before the design became a dedicated freight locomotive, while a passenger version was not further developed.

Initial prototypes used the 12-cylinder 9D100 opposed piston two-stroke diesel engine to achieve the required power levels.

However problems were encountered and another variant of the 2D100 was used, the 10D100, another 10 cylinder two-stroke diesel design.

The body of the locomotive was based on two three-axle trucks like the TE3 predecessor.