The American company Tesla(which is founded by Elon Musk) that makes electric cars is getting ready to make an updated Model Y SUV in China, Bloomberg News reported, citing people familiar with the matter. They might start making a lot of them by around the middle of 2024, the people said, asking not to be identified because the information isn’t public.
The new Model Y in 2024 will look quite different on the outside and inside compared to the last update in October. In that update, they changed the design of the wheels and added special lighting inside, but the details weren’t shared by the sources.
The initial group of the latest Model Y vehicles will be produced in the second part of Tesla’s Shanghai plant. This part of the facility will pause production for about a week during the New Year holiday to undergo some upgrades, as mentioned by one source. Before they can start making a lot of them, additional changes will be needed, according to the same source.
Tesla’s Shanghai Plant Success
Founded in 2019, Tesla’s Shanghai plant currently manufactures more than half of the electric car company’s global deliveries. The Model Y, introduced in 2020, has become highly sought after and is now one of the top-selling electric vehicle models worldwide. In China, nearly 75% of Tesla’s total sales in the country come from the Model Y, according to data gathered by Bloomberg Intelligence.
Other car companies in the same country as Tesla, like BYD Co. and newer ones like Xpeng Inc., are introducing many new vehicles to gain more customers in different markets. BYD, based in Shenzhen, is expected to become the new global leader in fully electric car sales, possibly in the current quarter, surpassing Tesla.
In the earlier part of this year, Tesla updated its Model 3 sedan, which had been around for six years, to make it look sleeker and have a longer range, aiming to attract more customers.
In November, the sales of new-energy vehicles in China, encompassing plug-in hybrids and fully electric cars, increased by 40% compared to the same month last year. Additionally, there was an 8.9% rise from October, bringing the total units sold to 841,000, as reported by China’s Passenger Car Association earlier this month.
Conclusion
Tesla is gearing up for the release of an upgraded Model Y SUV in China by mid-2024, featuring significant design changes. The initial batch will be produced in Tesla’s Shanghai plant, temporarily pausing for upgrades. With China dominating Tesla’s global sales, the electric car landscape sees competition intensifying, notably from BYD.
