Elon Musk, the CEO of Tesla Inc., has announced that the company has started delivering its refreshed Model Y in China. Meanwhile, US customers who have placed orders for the vehicle are still waiting for their deliveries to begin, which is expected to start in March.
What’s Happening
Tesla has officially kicked off deliveries of the new Model Y in China, as announced on social media. The post was accompanied by photos of customers receiving their vehicles, surrounded by decorations.
Key Details
- The refreshed Model Y was launched in China first, followed by the US market a few days later.
- In China, the starting price of the refreshed vehicle is 263,500 yuan, which is approximately 5.4% higher than the previous version.
- US deliveries are expected to commence in March.
Significance
The Model Y is Tesla’s best-selling vehicle, and the launch of the refreshed model comes after the company reported a decline in annual vehicle deliveries for the first time in over a decade. In 2024, Tesla delivered 1.79 million vehicles globally, down from 1.81 million in 2023.
Production and Challenges
During the company’s earnings call last month, Elon Musk mentioned that production would be affected during the retooling of factories to prepare for the refreshed vehicle’s production. The CEO also warned that margins would be impacted due to idle capacity and other ramp-related costs. However, these challenges are expected to be overcome once production is ramped up.
Future Outlook
As Tesla continues to roll out its refreshed Model Y, the company is poised to overcome the current production challenges and regain its momentum in the EV market. With the new model’s launch, Tesla aims to maintain its position as a leader in the industry and drive growth in the coming months.