Tesla has introduced an improved version of its Model Y to the Chinese market.
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.
Prices for the Model Y will start at 263,500 Chinese yuan ($35,935), with deliveries starting in March. That's 5.4% more expensive than the starting price of the previous Model Y.
A Tesla China spokesperson said the new Model Y will only be available for pre-order in the Chinese market and will not be launched globally.
Tesla's Model Y refresh comes after the auto giant announced it earlier this month first-ever annual decline in total deliveries in 2024.
Elon Musk's electric vehicle company faces increased competition around the world from start-ups and traditional carmakers in Europe. In China, the company continues to face an onslaught from competitors BYD for newer players like Xpeng AND Nio.
Tesla is offering customers a number of incentives to purchase the Model Y, including a five-year, 0% interest financing plan.
The new Model Y can accelerate from 0 to 100 kilometers per hour in 4.3 seconds, Tesla said, exceeding the speed capabilities of the previous vehicle. The Y Long Range model has a longer range on a single charge compared to its predecessor.
Tesla hasn't introduced a new model since it started delivering the Cybertruck in late 2023, which starts at almost $80,000.
Investors yearned for a new mass market model that would revitalize sales. Tesla has previously suggested that the new, affordable model could be launched in the first half of 2025.
Despite Tesla's unfavorable conditions, the company's shares have surged nearly 70% over the past 12 months, in part due to CEO Musk's close relationship with US President-elect Donald Trump.