Tesla’s upgraded Model Y in Shanghai signifies a strategic move in the competitive EV market.
Tesla Inc. is gearing up to introduce an updated version of its highly successful Model Y, with plans to launch it from its Shanghai facility, sources close to the development report. As competition intensifies with local challengers in the EV market, Tesla is stepping up its game with this latest move.
The American EV giant is in the midst of pre-launch preparations in China for the new iteration of its Model Y SUV, with expectations to commence large-scale production around the middle of 2024. These plans are currently under wraps, as the sources preferred to remain anonymous due to the sensitive nature of the information.
This upcoming 2024 Model Y variant is set to showcase more significant changes in both its exterior and interior compared to its last update in October, which saw minor enhancements like new wheel designs and ambient lighting. Specific details about these changes were not disclosed by the sources.
The initial production of the latest Model Y models is scheduled to occur in the expanded section of Tesla’s Shanghai plant. This facility will briefly halt production during the New Year holiday for a partial upgrade, and further modifications are anticipated before ramping up to full production capacity, one of the insiders mentioned.
Tesla’s representatives in China have not provided any comments on this matter.
About Tesla’s Shanghai factory
Tesla’s Shanghai factory, operational since 2019, has become a pivotal production hub, now responsible for over half of Tesla’s global deliveries. The Model Y, first introduced in 2020, has gained immense popularity, becoming one of the top-selling EV models globally. In China, the Model Y contributes to nearly three-quarters of Tesla’s total sales in the country, as per Bloomberg Intelligence data.
With the EV market heating up, Tesla’s local competitors in China, including veterans like BYD Co. and newer companies such as Xpeng Inc., are aggressively launching new models to capture more market segments. BYD, based in Shenzhen, is on track to overtake Tesla as the leading global seller of fully electric vehicles, potentially within the current quarter.
Earlier in the year, Tesla updated its six-year-old Model 3 sedan, enhancing its design and extending its driving range to stay competitive.
Conclusion
According to recent figures from China’s Passenger Car Association, sales of new-energy vehicles in China, encompassing plug-in hybrids and electric cars, saw a 40% year-on-year increase in November, reaching 841,000 units. This figure also represents an 8.9% rise from the previous month.
