Tesla is currently working on preparations for the updated Model Y in China, which could begin mass production as early as mid-2024, according to Bloomberg.
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Tesla (NASDAQ: TSLA) is preparing to roll out a revamped version of the Model Y at its Shanghai factory as domestic rivals accelerate product launches amid stiff competition, Bloomberg said in a report today, citing people familiar with the matter.
The US electric vehicle (EV) maker is currently making preparations for an updated version of the Model Y in China, which could begin mass production as early as mid-2024, according to the report.
The 2024 version of the Model Y will have more obvious exterior and interior changes than the latest update in October, which added a new wheel design and ambient lighting, people familiar with the matter said.
The first batch of the latest Model Y SUVs will be produced in the second phase of Tesla's Shanghai factory, which will suspend production for about a week over the New Year's holiday for a partial upgrade, one of the people said, according to Bloomberg.
More adjustments will have to be made before mass production, the people said.
Tesla China said it's false information, but didn't provide more details, according to a report from local media outlet Cailian.
Tesla's factory in Shanghai currently has an annual capacity of more than 950,000 vehicles, its largest in the world, according to the company's third-quarter financial report.
The plant produces the Model 3 sedan as well as the Model Y. No other Tesla models are built at the plant.
Giga Shanghai began operations at the end of 2019 and began deliveries of the locally produced Model 3 in January 2020 and the locally produced Model Y in January 2021.
On March 1, a Reuters report said Tesla was preparing a production revamp of the Model Y, codenamed Project Juniper, which involves the exterior and interior of the SUV, with the goal of starting production in 2024.
On September 1, Tesla unveiled the revamped version of the Model 3, which was internally codenamed Highland, in China. On October 19, Tesla began official sales of the sedan. On October 26, Tesla said it had begun deliveries of the new Model 3 in China.
On October 1, Tesla launched an updated Model Y in China, with unchanged pricing but minor updates to features. On October 15, the company said deliveries of the new Model Y in China had begun.
Tesla sold 82,432 China-made vehicles in November, including 65,504 sold in China and 16,928 exported, according to the China Passenger Car Association (CPCA).
Retail sales of the Model Y in China in November were 49,877 units, up 89.26 percent from 26,353 units in October, though down 4.86 percent from 52,424 units in the same month last year. The crossover contributed 76.14 percent of Tesla's retail sales in China in November.
In the January-November period, Model Y retail sales in China were up 38.62 percent to 396,339 units, contributing 75 percent of Tesla's 527,859 sales in China, according to data compiled by CnEVPost.
The Model Y is one of the best-selling EVs in China, but it's also seeing a growing number of competitors.
Models including Nio's (NYSE: NIO) new ES6, which was launched on May 24, Baidu-backed Jiyue's Jiyue 01, which was launched on October 27, and Denza's Denza N7, launched on July 3, are all competing with the Model Y.
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