Tesla is planning to release an updated version of its popular Model Y SUV from its plant in Shanghai, China, according to a report from Bloomberg.
The electric vehicle maker led by CEO Elon Musk is in the process of preparing the Shanghai factory for mass production of the new Model Y, which could begin as early as mid-2024 according to the Bloomberg report, which cited people familiar with the matter.
The changes on tap for the 2024 Model Y will reportedly be more noticeable than the most recent changes Tesla made to the vehicle in October, which redesigned the SUV’s wheel and added additional lighting.
Tesla’s revamped Model Y has been in the works since early 2023, as Reuters reported in March that the company was planning to start production of a new version of the SUV in 2024, citing three sources familiar with the matter.
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FOX Business reached out to Tesla for comment.
The revamped Model Y comes as Tesla has faced increasing competition from Chinese automakers like BYD that have cut into its market share in China. Tesla has sought to counteract those competitive pressures in both China and in other markets like the U.S. by increasing discounts on some of its key models.
Tesla is expected to release its electric vehicle (EV) delivery figures for the fourth quarter as early as Tuesday.
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Analysts have suggested the company will set a new quarterly record for deliveries while falling short of the 2 million annual global deliveries that Musk touted as a goal at the beginning of 2023.
Tesla is projected to have delivered 1.82 million vehicles globally in 2023, an increase of 37% from 2022, of which about 473,000 units were delivered in the fourth quarter, according to 14 analysts polled by LSEG.
The EV maker will face some new headwinds as it enters 2024, with federal tax credits expiring for some of its cars in the U.S. as well as in Germany, where the government is ending its EV subsidy program early. That could force Tesla into more price cuts next year despite interest rates and battery costs being expected to ease.
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Tesla is also planning to ramp up production of the long-awaited Cybertruck, an EV pickup that was first announced in 2019 but faced years of delays before the first production candidate model rolled off the assembly line at the company’s Gigafactory in Texas. The company officially began deliveries of the Cybertruck at the end of November.
Reuters contributed to this report.
