Tesla Inc. officially unveiled its highly anticipated refreshed Model Y SUV in China on Friday, initiating order taking for the vehicle poised to reinvigorate its presence in the competitive Chinese electric vehicle (EV) market, Bloomberg reports.
The updated Model Y, known internally as “Juniper,” is expected to begin deliveries to Chinese customers in March, pending necessary regulatory approvals. Notably, this launch precedes its release in the United States.
The base rear-wheel-drive version of the Model Y Juniper will start at 263,500 yuan ($35,900), marking a crucial step for Tesla as it seeks to regain market share against aggressive domestic rivals.
This refreshed Model Y boasts an updated exterior and interior design, and a claimed range of nearly 600 kilometers (373 miles) on a single charge. While maintaining its signature raindrop body shape, the front-end design features a thin LED running light unit, drawing comparisons to Tesla’s futuristic Cybertruck.
The launch comes at a critical time for Tesla in China. The company faces increasing pressure from local automakers, like BYD Co., which are rapidly gaining ground in the EV sector. Last year, Tesla’s Shanghai factory experienced its first-ever drop in annual shipments since mass production began in 2020. This dip highlights the intensifying competition and a more subdued global demand for its vehicles. The Shanghai plant produces both the Model 3 sedan and Model Y SUV for both the Chinese domestic and international markets.
To facilitate the transition to the new model and clear inventory of older versions, Tesla is offering a substantial 10,000 yuan price cut on existing Model Ys, bringing the cost down from its original 249,000 yuan listing price. Additionally, customers can take advantage of a five-year, interest-free mortgage plan.
In a somewhat counterintuitive move, the company also increased the price of its China-built Model 3, raising the starting price to 235,500 yuan from 231,900 yuan.
These moves are happening against the backdrop of the Chinese government’s efforts to boost sales of fuel-efficient vehicles. Beijing recently renewed its trade-in subsidy program, offering up to 20,000 yuan for qualifying older vehicles. The program, which gave a significant boost to EV and hybrid sales following its introduction last year, has now been expanded to include a wider range of eligible vehicles. Over 3.7 million vehicles were purchased under the previous program, demonstrating the potential impact of this initiative.
