Tesla launches facelifted Model Y in China to fend off domestic rivals

tesla announced a refreshed version of its popular Model Y in China on Friday, as the American electric car giant looks to fend off challenges from domestic rivals.

The Model Y will start at 263,500 Chinese yuan ($35,935) and deliveries will begin in March. This is 5.4% more expensive than the starting price of the previous Model Y.

A Tesla China spokesperson said the new Model Y is only open for pre-sale in the Chinese market, rather than launching globally.

Tesla’s Model Y update comes after the auto giant this month reported its First annual drop in total deliveries by 2024.

Elon Musk’s electric vehicle company faces increased competition around the world, both from startups and traditional automakers in Europe. In China, the company continues to face an avalanche of rivals from BYD to newer players like xpeng and child.

Tesla is offering a number of incentives for customers to purchase the Model Y, including a five-year 0% interest financing plan.

The new Model Y can accelerate from 0 kilometers per hour to 100 kilometers per hour in 4.3 seconds, Tesla said, surpassing the previous vehicle’s speed capabilities. The Model Y Long Range has a longer range on a single charge compared to its predecessor.

Tesla has not introduced a new model since it began delivering the Cybertruck in late 2023, which starts at nearly $80,000.

Investors have been yearning for a new mass-market model to revitalize sales. Tesla has previously hinted that a new affordable model could be launched in the first half of 2025.

Despite Tesla’s headwinds, the company’s shares have risen nearly 70% over the past 12 months, in part due to CEO Musk’s close relationship with US President-elect Donald Trump.