Tesla is rolling out a facelifted Model Y in China to fend off domestic rivals

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 be priced from 263,500 Chinese yuan ($35,935), with deliveries starting in March. That’s 5.4% more than the starting price of the previous Y model.

A spokesperson for Tesla China said the new Model Y is only open for pre-sale in the Chinese market and not launched globally.

Tesla’s Model Y update comes after the auto giant announced its own this month the first annual decline in total supplies in 2024.

Elon Musk’s electric car company is facing increased competition worldwide from startups and traditional car makers in Europe. In China, the company continues to face an onslaught of competitors BYD for new players like Xpeng and Nio.

Tesla is offering a number of incentives for customers to purchase a Model Y, including a five-year 0% interest financing plan.

Tesla said that the new Model Y can accelerate from 0 kilometers per hour to 100 kilometers per hour in 4.3 seconds, surpassing the speed capabilities of the previous car. The Y Long Range model has additional range on a single charge compared to its predecessor.

Tesla hasn’t introduced a new model since it began shipping the Cybertruck in late 2023, which starts at nearly $80,000.

Investors craved a new mass-market model to boost sales. Tesla previously hinted that a new affordable model could be launched in the first half of 2025.

Despite Tesla’s headwinds, the company’s stock has risen nearly 70% over the past 12 months, in part due to CEO Musk’s close relationship with US President-elect Donald Trump.