Tesla (TSLA) Launches New Model Y in China to Boost Market Presence

Tesla (TSLA, Financial) has officially launched its new Model Y SUV in China, announcing the start of order acceptance on its website. As one of the top-selling electric vehicles in the Chinese market, deliveries of the new Model Y will commence in March following regulatory approvals. The updated Model Y, with the codename Juniper, debuts in China before the U.S. market entry, starting at 263,500 Yuan (approximately $35,900). This version features a fresh design both externally and internally, and it boasts a range of nearly 600 kilometers (373 miles) per charge.

Amidst increasing competition from local Chinese brands such as BYD, Tesla is seeking to invigorate its product line in China. The Shanghai factory, which produces the Model 3 and Model Y for domestic sales and export, saw its annual shipments fall last year for the first time since mass production began in 2020. This decline is attributed to intensified domestic competition and lukewarm global demand.

To clear older Model Y inventory, Tesla has reduced the price by 10,000 Yuan from the original 249,000 Yuan and is offering a five-year interest-free mortgage plan. Additionally, the American automaker raised the starting price of its China-made Model 3 from 231,900 Yuan to 235,500 Yuan.