Electric vehicle giant Tesla has started production of its refreshed Model Y across its four factories around the globe, including its gigafactory in Texas. This move marks a significant milestone for the company as it aims to ramp up production and meet growing demand for its best-selling vehicle.
What Happened
Tesla shared a photograph of a new Model Y produced at its gigafactory in Berlin, signed by the team there. The photograph shows the black vehicle filled with signatures in gold and silver. The company announced that production has now started across all of its four vehicle factories around the world, simultaneously.
Key Highlights
- Production of the updated Model Y has commenced across all four Tesla factories globally
- Deliveries are slated to start in March in China and the US
- The company will be retooling factories for the start of production, resulting in several weeks of lost production in the first quarter
- Margins will be impacted due to idle capacity and other ramp-related costs
Why It Matters
The refreshed Model Y launch follows Tesla’s report of a fall in vehicle deliveries for the first time in over a decade. The company reported global deliveries of 1.79 million vehicles in 2024, down from full-year deliveries of 1.81 million in 2023. Tesla’s decision to upgrade all its factories simultaneously is a bold move, with CEO Elon Musk stating that the company is not aware of anyone else taking the best-selling car on the planet and updating all factories at the same time.
About the Updated Model Y
The updated Model Y was first launched in China in January and later in the US. The vehicle features several improvements and upgrades, making it an attractive option for customers. With production now underway, Tesla is poised to meet growing demand and maintain its position as a leader in the electric vehicle market.
Next Steps
As production ramps up, Tesla is expected to overcome the challenges associated with retooling its factories. The company’s decision to upgrade all its factories simultaneously demonstrates its commitment to innovation and customer satisfaction. With deliveries set to commence in March, customers can look forward to getting their hands on the updated Model Y soon.