Tesla Giga Shanghai plans to release 2024 Model Y refresh as competition heats up in China.
People familiar with the matter told Bloomberg that Gigafactory Shanghai is already preparing to produce the 2024 refresh Model Y. Mass production on the new Model Y is expected to start by mid-2024.
The new Model Y units will be produced in the new phase of Gigafactory Shanghai. Production in the second phase of Tesla China’s factory will be suspended during New Year’s for upgrades. More updates to the Model Y assembly line will be made after the holidays.
Giga Shanghai’s 2024 Model Y refresh is expected to have significant changes compared to the updated units Tesla released in October 2023. The new Model Y will have more noticeable changes to the exterior and interior. For example, Tesla is expected to launch a new wheel design with ambient lighting.
Tesla’s new Model Y will compete with new electric car units in China next year. Tesla’s rivals in China, like BYD and Xpeng, plan to unveil several new vehicles across a few market segments in 2024. According to China’s Passenger Car Association, new energy vehicle sales increased by 40% in November to 841,000 units. China includes pure electric cars and hybrid vehicles.
Tesla’s demand in China and the United States seems to be holding up steadily. The company rolled out a few minor price adjustments leading to Christmas, which many TSLA bulls believe is a good sign that Tesla is maintaining its demand. In October, Tesla slightly increased the price of the Model Y Long Range in the United States and raised the cost of the Model Y Performance in China. In November, Tesla also slightly increased the price of the Model Y Long Range in China.
The Model Y has dominated the car market since its release, sometimes even overtaking its older sibling, the Model 3. For instance, Tesla has been on the Top 10 Most Popular EV Models list in the United Kingdom for five years. The Model 3 was number 1 on the list until recently, when it was bumped down to number 2, losing only to the Model Y.