Tesla launched a revamped version of its Model Y in China.
Tesla
Tesla on Friday announced a facelifted version of its popular Model Y in China, as the US electric car giant looks to fend off challenges from domestic rivals.
The Model Y will start at 263,500 Chinese yuan ($35,935), with deliveries to begin in March. That's 5.4% more expensive than the previous Model Y's starting price.
A spokesperson for Tesla China said that the new Model Y is only open for pre-sale in the Chinese market, rather than being launched globally.
Tesla's Model Y update comes after the auto giant reported this month the first annual decline in total deliveries for 2024.
Elon Musk's electric vehicle company is facing increased competition worldwide, from startups and traditional carmakers in Europe. In China, the company is still facing an onslaught of competitors from BYD to newer players like Xpeng and No.
Tesla is offering several 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 speed capabilities of the previous vehicle. The Model Y Long Range has a different driving range on one charge compared to its predecessor.
Tesla has not introduced a new model since it began shipping the Cybertruck in late 2023, which will start at nearly $80,000.
Investors have been calling for a new mass-market model to boost sales. Tesla has previously announced that a new affordable model could be launched in the first half of 2025.
Despite Tesla's headwinds, the company's stock is up nearly 70% over the past 12 months, thanks in part to CEO Musk's close relationship with US President Donald Trump .
