Tesla Inc. has announced that it has officially started producing the updated Model Y at its gigafactory in Shanghai. The company revealed this news on a social media platform, stating that deliveries of the refreshed vehicle will commence soon.
Production and Delivery Details
Although Tesla did not provide a specific date for the start of deliveries, it mentioned on its China website that the process will begin in late February or next week. This is earlier than the previously anticipated timeline of March. The US deliveries, however, are slated to start only in March.
Features and Pricing of the Refreshed Model Y
The rear wheel drive variant of the new Model Y is priced at 263,500 yuan, which is nearly 5.4% more expensive than the older version. The more premium long-range all-wheel drive variant starts at 303,500 yuan.
Importance of the Refreshed Model Y
The launch of the refreshed Model Y is significant, as it follows Tesla’s report of a fall in vehicle deliveries for the first time in over a decade. The company delivered 1.79 million vehicles globally in 2024, down from 1.81 million in 2023. Tesla’s CEO, Elon Musk, had warned that the production of the refreshed vehicle would result in several weeks of lost production in Q1. However, he also stated that these challenges will be overcome once production is ramped up.
Impact on Tesla’s Production and Margins
The production of the refreshed Model Y has required Tesla to retool its factories, resulting in a temporary loss of production. This, in turn, is expected to impact the company’s margins due to idle capacity and other ramp-related costs.
Conclusion
The refreshed Model Y is a crucial vehicle for Tesla, as it is the company’s best-selling model. With the production of the updated vehicle now underway, Tesla is poised to regain its momentum in the electric vehicle market. As the company navigates the challenges of ramping up production, it is expected to overcome the initial hurdles and achieve its goals.
Key Points
- Tesla has started producing the updated Model Y at its Shanghai gigafactory
- Deliveries of the refreshed vehicle will commence soon, with the exact date to be announced
- The rear wheel drive variant is priced at 263,500 yuan, while the long-range all-wheel drive variant starts at 303,500 yuan
- The production of the refreshed Model Y has required Tesla to retool its factories, resulting in a temporary loss of production
- The company’s margins are expected to be impacted due to idle capacity and other ramp-related costs
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For more information on the electric vehicle market and Tesla’s latest developments, please refer to our Future of Mobility coverage.
Photo
Photo courtesy: Tesla