Tesla to Revamp Model Y EV in China as Rival BYD Motors Closes In - The Messenger
It's time to break the news.The Messenger's slogan

Tesla to Revamp Model Y EV in China as Rival BYD Motors Closes In

Mass production of a refreshed Model Y is expected to begin as soon as mid-2024

Tesla’s 2024 Model Y is expected to have a series of “obvious” changes to its exterior and interior. (Photo by Brandon Bell/Getty Images)

Tesla is reportedly preparing to launch an updated version of its best-selling Model Y SUV at its facility in China, as its competitor BYD appears poised to overtake it as the world's most popular electric vehicle maker.

The Austin, Texas-based automaker is working to ready its Gigafactory Shanghai to assemble the revamped Tesla SUV, people familiar with the matter told Bloomberg News. Mass production could start as soon as mid-2024, they added.

The updated Tesla EVs will be produced at Gigactory Shanghai's second phase, which is already dedicated to Model Y production. Production lines are expected to be suspended during the New Year holiday for about a week for a partial upgrade, Bloomberg reported, and additional adjustments will be made before mass production begins.

The 2024 Model Y will have more obvious changes to its exterior and interior than what was in its October update, people familiar with the matter told Bloomberg, although they declined to provide further details. Tesla added a new wheel design, ambient lighting and made the SUV slightly faster.

In September, the carmaker unveiled an updated version of its Model 3 compact car, which will now come with a longer driving range and steeper price tag. Produced in China, it was the first time Tesla introduced a new vehicle there rather than in the U.S.

The updated EVs come as Tesla faces challenges from Chinese automakers such as BYD and Xpeng, which are unveiling their own new vehicles. In July, China's top automakers and Tesla signed a joint agreement to avoid "abnormal pricing" after the U.S. company slashed prices and set off a fierce price war.

Shenzhen-based BYD is poised to surpass Tesla as the worldwide leader in EV sales as soon as its current fiscal quarter ends, according to Bloomberg. Tesla outsold BYD by only 3,456 more EVs in the last quarter, a sharp turnaround from the prior year, when Tesla sold more than 85,000 more vehicles than BYD.

"[BYD's] cars are highly competitive these days," Tesla CEO Elon Musk wrote earlier this year on X, formerly Twitter, which he owns.

Businesswith Ben White
Sign up for The Messenger’s free, must-read business newsletter, with exclusive reporting and expert analysis from Chief Wall Street Correspondent Ben White.
 
By signing up, you agree to our privacy policy and terms of use.
Thanks for signing up!
You are now signed up for our Business newsletter.