Tesla Inc. has launched a refreshed version of its best-selling Model Y SUV in China, featuring a longer range, new design, and higher quality interior. The move aims to revitalize the company’s aging vehicle lineup amidst intensifying competition in the electric vehicle market.
Key Features of the Updated Model Y
- Longer range and new design
- Higher quality interior
- Launch series starts at 263,500 yuan, approximately 5.4% pricier than the older version
- Deliveries expected to start in March, pending regulatory approval
Variants and Pricing
The updated Model Y is currently available in two variants on Tesla’s China website:
- Rear-wheel drive: starting at 263,500 yuan, with an estimated range of 593 km
- Long-range all-wheel drive: starting at 303,500 yuan, with an estimated range of 719 km
Note that the Performance variant is not listed on the website, similar to the initial launch of the refreshed Model 3.
Why it Matters
The updated Model Y is a crucial move for Tesla, as it seeks to maintain its competitive edge in the Chinese market. China is a vital market for the company, with Tesla selling around 657,000 vehicles in the country in 2024, marking an 8.8% year-on-year growth. The refreshed Model Y is expected to follow a similar launch pattern to the Model 3, with a potential US launch in the coming months.
Context and Implications
The updated Model Y launch comes amidst a significant milestone for Tesla, with the company reporting global deliveries of 1.79 million vehicles in 2024. While this marks a decline from the previous year, the Chinese market remains a bright spot for the company. The success of the updated Model Y will be closely watched, as it seeks to build on the momentum of the Model 3 and maintain its position in the competitive EV market.