- Tesla finally unveiled the long-awaited, updated version of its Model Y crossover.
- The new model is launching first in China and other Asian-Pacific markets.
- The redesigned version of Tesla's best seller arrives just after its first annual sales slump in over a decade.
A refreshed Tesla Model Y crossover appeared on the automaker's Asian-Pacific region websites on Thursday, giving the world its first look at the long-awaited, updated version of Tesla's best-selling vehicle.
The redesigned crossover launches at a time when Tesla seriously needs a win and is facing unprecedented competition on the global stage. Its worldwide deliveries sank in 2024—from 1.81 million units to 1.79 million—marking the automaker's first annual drop in sales in over a decade. The updated crossover could help reignite sales in 2025 and beyond.
Deliveries of the new model will be begin in China in March, before expanding to markets like Australia, Thailand and Hong Kong.
A Facelifted Design, Inside And Out
The updated model features a new nose with an angular light bar reminiscent of Tesla's Cybertruck pickup and the Cybercab robotaxi unveiled late last year. It also has a beefy light bar running across its rear. Otherwise, the exterior styling is largely identical to the current Model Y.
Similar to the Model 3 "Highland" refresh that launched in late 2023, the side profile of the updated Model Y, referred to internally as the "Juniper" update, looks similar to the outgoing model.
The refreshed crossover also gets a big interior makeover that brings it in line with the recently-updated Model 3 sedan. That includes an ambient lighting strip running throughout the cabin and a screen for rear passengers. Unlike the Model 3, though, the new Model Y appears to have a conventional turn-signal stalk. (In the Model 3, the indicators were relocated to steering wheel buttons, which lots of people find annoying.)
Longer Range And Improved Efficiency
On Tesla's China website, it says the new Model Y has been tuned for better efficiency and gets an updated suspension that produces a smoother ride. The latter, plus a new tire and wheel package, could solve one of the biggest complaints owners have about the Model Y: its overly stiff suspension and bumpy ride quality.
The Long-Range All-Wheel Drive variant earns a 719-kilometer (446 mile) range estimate according to China's testing procedure, which yields more generous ratings than the EPA figures we're accustomed to in the U.S. That's a slight, 4.5% increase over the 688 km (428 miles) previously provided by that trim. Tesla quotes a 0-62 mph sprint as low as 4.3 seconds.
Tesla is also offering a lower-priced, rear-wheel-drive option with an estimated range of 593 km (368 miles), up 7% from the 554 km (344 miles) available in the pre-update model.
New Model Y Pricing
Both models are priced slightly higher than their predecessors in China. The Long-Range AWD model comes in at 303,500 RMB (around $41,400).
The Rear-Wheel Drive one is on offer for 263,500 RMB, or roughly $35,900. Those represent roughly 4% and 5% price bumps, respectively.
Why The New Model Y Matters
Whereas most automakers give their cars visual tweaks every few years and complete overhauls periodically, Tesla hasn't changed up the look of the Model Y since it went on sale in 2020. Auto industry analysts say that decision—and more broadly, Tesla's limited, stale lineup of cars—has dragged down demand for Teslas as competition in the EV space has intensified.
The Cybertruck launched in late 2023 as Tesla's latest brand-new model, but it's proved too expensive and polarizing to drive demand in a major way thus far.
The Model Y is now the best-selling electric vehicle in the world—and, furthermore, one of the best selling vehicles of any powertrain. That's great for Tesla. But it also means EV buyers may be clamoring for something new and different. Whether the improved Model Y will be new and different enough to fuel Tesla's ambitions for growth is still an open question.
Tesla will also need more models—and particularly, lower-priced ones—if it wants to continue expanding its sales, experts say. The company says it will launch a new car this year but hasn't shared any details.
China is one of Tesla's most important markets and is by far the largest market for electric vehicles, which helps explain why the new model is going on sale there first. Plus, Tesla is facing stiff competition in the country from fast-moving, homegrown EV makers like BYD and Geely.
There's no word yet as to when the new model will go on sale in the U.S. and Europe.
Got a tip about Tesla or the EV world? Contact the author: Tim.Levin@InsideEVs.com
Update Jan. 9 11:30 ET: Story was updated to reflect that the vehicle will launch in numerous Asian-Pacific markets following introduction to China. A previous version of this story incorrectly stated that the new Model Y does not have a turn-signal stalk.
