Tesla (NASDAQ: TSLA) unveiled an updated version of its Model Y crossover SUV in China on Friday, featuring refined styling, upgraded interiors, and extended driving ranges, as the company faces growing competition from local players like BYD and Xiaomi.
The refreshed Model Y is set to begin deliveries in March, and comes in two variants:
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Rear-Wheel Drive (RWD): Priced at 263,500 yuan ($35,900), equipped with a 62.5 kWh battery offering a range of 593 km.
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All-Wheel Drive (AWD): Priced at 303,500 yuan, featuring a 78.4 kWh battery with a claimed range of 719 km.
China Remains Crucial but Competitive
The Model Y remains Tesla’s top-selling vehicle in China, produced at its Shanghai Gigafactory since 2020. In 2024, Tesla delivered a record 657,000 vehicles in China, making it the company’s second-largest global market.
However, Tesla’s market share has been declining, challenged by aggressive domestic brands and an ongoing EV price war that has significantly narrowed profit margins.
With the new Model Y refresh, Tesla aims to reinforce its positioning through product innovation, hoping to stay ahead in the world’s most competitive EV market.