Tesla introduces updated Model Y in China to compete with local rivals.

• Tesla unveiled a revised Model Y in China on Friday, as the U.S. electric car company aims to counter competition from domestic rivals.
• The Model Y will commence at 263,500 Chinese yuan ($35,935), with deliveries slated for March.
• The Model Y has been updated with improved driving range and acceleration speed.

On Friday, Tesla unveiled a revised version of its popular Model Y in China, as the U.S. electric car company aims to counter competition from domestic rivals.

The Model Y will cost 5.4% more than the previous Model Y's starting price, which is 263,500 Chinese yuan ($35,935), with deliveries starting in March.

The new Model Y is currently only available for pre-sale in the Chinese market, not globally, according to a spokesperson for Tesla China.

Tesla's Model Y refresh is set to be released this month, following the company's announcement of its first annual decline in overall deliveries for 2024.

Elon Musk's electric vehicle company is facing increased competition worldwide, with startups and traditional carmakers in Europe, as well as new players like NIO and Xpeng Motors, posing a threat in China.

In 2024, the Tesla Model Y was the top-selling electric vehicle in China, and its popularity remains high. However, the competition in the sports utility vehicle (SUV) market with vehicles priced between 250,000 yuan and 350,000 yuan has been intense.

To remain competitive in the market, Tesla must demonstrate innovative smart features, specifically a tailored cockpit and services environment, as well as efficient semi-autonomous driver assistance features.

Tesla is providing a five-year 0% interest financing plan as an incentive for customers to purchase the Model Y.

The new Model Y can accelerate from 0 kilometers per hour to 100 kilometers per hour in 4.3 seconds, Tesla announced, surpassing the speed capabilities of the previous vehicle. Additionally, the Model Y Long Range has a greater driving range on a single charge compared to its predecessor.

Since the release of the Cybertruck in late 2023, Tesla has not introduced a new model, with the Cybertruck starting at nearly $80,000.

Tesla has previously suggested that a new affordable model could be launched in the first half of 2025, which investors have been eagerly anticipating to rejuvenate sales.

Although Tesla has faced challenges, its stock has increased by almost 70% in the past year, partly because of CEO Musk's connection with U.S. President-elect Trump.