- Tesla Inc. refreshed its best-selling Model Y, applying a design element of the polarising Cybertruck to its high-volume sport utility vehicle.
The model made its debut on Tesla’s China website on Friday, where the company started taking orders for deliveries starting in March. The thin LED light running across the front end is reminiscent of the Cybertruck, a much slower seller that launched just over a year ago.
In addition to the new-look exterior and minor interior changes, the updated Model Y will offer slightly better range. The 263,500-yuan base model is expected to run 593 kilometers before needing to recharge.
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The Model Y was due for upgrades, with Tesla having made minimal design changes to the vehicle since its initial debut five years ago. The automaker is coming off its first annual decline in worldwide vehicle deliveries in over a decade and narrowly retained its lead over China’s BYD Co. as the world’s top seller of fully electric cars in 2024.
“The facelift should address the issue that Model Y was increasingly perceived as aged product,” said Patrick Hummel, an analyst at UBS, which has a sell rating on Tesla’s stock. Still, for competitors in the segment, “we would not see the Model Y facelift as a game changer.”
Tesla shares fell as much as 4.5% intraday and were down 0.9% as of 12:30 p.m. in New York. The stock soared 63% last year.
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What Bloomberg Intelligence Says
Tesla has begun taking orders for the redesigned Model Y, among the world’s best-selling vehicles, and fewer parts in the updated model means it will likely cost less to produce than its predecessor.
— Steve Man, senior industry analyst
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To clear inventory of the outgoing version of the Model Y, Tesla is marking down the 249,000-yuan SUV by 10,000 yuan and offering five-year, interest-free loans. The automaker also increased the starting price of its China-built Model 3 sedan by about 1.6% to 235,500 yuan.
To help boost sales of electric cars and fuel-efficient hybrids, China earlier this week renewed a trade-in subsidy of up to 20,000 yuan. Beijing also widened the pool of older vehicles that qualify for the program, according to a policy document published Jan. 8.
The cash-for-clunkers program provided a major lift to sales last year, with more than 3.7 million vehicles purchased under the program.
©2025 Bloomberg L.P.
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First Published Date: 10 Jan 2025, 23:17 PM IST
