Tesla is launching a refreshed Model Y in China as it takes on local rivals
Patrick Pleul/picture alliance via Getty Images
- Tesla has launched a refreshed Model Y in China as it fights off fierce competition from local rivals.
- The new Model Y is also available to order in Australia and parts of Asia, but there's no sign of a US release yet.
- Tesla is under pressure, with annual sales falling even as Chinese competitors like `BYD report booming demand.
Tesla has launched an updated version of its most successful car — but you can't order it in the US yet.
The Elon Musk-run automaker unveiled a long-rumored refresh of the Model Y on Friday, with deliveries set to begin in China in March as the company fights off fierce competition from local EV rivals.
The new Model Y will have a longer range than its predecessor and an updated design that includes a Cybertruck-style light bar, according to Tesla's Chinese website.
The updated EV is currently available to order in China, parts of Southeast Asia, Australia, and New Zealand. There is currently no word on when it will come to the US or Europe.
In China, it will cost 263,500 yuan ($35,900), around $3,000 more expensive than the current starting price of the existing model.
The new Model Y's first appearance in China is no surprise, as Tesla is locked in a brutal price war with local EV companies in the world's largest auto market.
BYD, Nio, and Zeekr all reported big increases in annual electric vehicle sales earlier this month, with Tesla nemesis BYD announcing it had sold 1.76 million EVs in 2024 on the back of strong demand for its affordable models.
Tesla still leads the way, selling 1.79 million vehicles last year, but the carmaker reported its first-ever decline in annual sales in 2024, and is under pressure to meet Elon Musk's ambitious target of 20-30% sales growth this year.
Tesla will be hoping a refresh to the Model Y will help it hit that lofty target and refresh an increasingly stale product lineup.
The last new vehicle released by the company in 2023 was the Cybertruck, which isn't sold in China and has failed to significantly boost Tesla's sales figures.
Some workers on the Cybertruck line in the US have been moved to Model Y production, employees at Tesla's Austin factory told Business Insider.
The automaker has said it will release new, affordable EV models in the first half of this year but is yet to share any details, with Musk focusing instead on the steering wheel-less Cybercab he unveiled in October.
Tesla did not respond to a request for comment, sent outside normal working hours.