Tesla China quietly unveiled an upgraded Model Y, showcasing several modifications designed to keep up with the recently revealed Model 3 refresh and the soon-to-be rolling off the production line - Cybertruck. Tesla China made its grand announcement on its official Weibo account, captioning the unveiling as the Model Y's "evolutionary debut."
Not Quite a Refresh, Yet Noteworthy
While the latest tweaks don't qualify the Model Y for a complete refresh label, they narrow the gap between it and the refreshed Model 3 Highland. Potential buyers will now find themselves weighing the merits of the updated Model Y against its all-new Highland.
We are expecting a full refresh for the Model Y, known as Juniper. However, it may be safe to say that the Highland stole the thunder as the Model 3 and Model Y are similar, so that you can guess the upcoming changes for the Model Y.
Changes in This Refresh
Dashboard & Ambient Lighting: The wood veneer trim has been stripped from the Model Y's dash. Replacing it is a textile trim, similar to the new Model 3. Along the dashboard Tesla has introduced RGB ambient lighting - to better match the Model 3. Given that the dashboard remains the same, this begs the question of whether these changes could be retrofitted to the current Model 3 and Model Y.
Wheel Upgrades: Stepping away from the traditional silver, the new Model Y now sports 19-inch black Gemini wheels. These aren't just aesthetically pleasing but also enhance the Model Y RWD's range by approximately 5 miles, taking it to 344 miles by the CLTC standard.
Performance Enhancements: There's more to the new Model Y than meets the eye. The Dual-Motor AWD Long Range version has seen a range uptick of around 17 miles, offering 428 miles on a single charge. Additionally, with a wind resistance coefficient refined to 0.23, the Model Y is a testament to Tesla's commitment to efficiency.
Performance: Tesla has improved the 0 to 100 km/h time of the Model Y as well. According to Tesla, this update will have the Model Y reach 100 km/h (62 mph) in 5.9 seconds.
FSD Hardware: According to Teslarati, Tesla China's Customer Support team confirmed that the updated Model Y does not include FSD hardware 4.0.
Pricing & Promotional Updates:
The Model Y RWD is priced at RMB 263,900 ($36,742 USD), while the Long Range and Performance variants come in at RMB 299,900 ($41,755 USD) and RMB 349,900 ($48,716), respectively.
In a bid to give new customers added incentives, Tesla China also announced that up until October 31, a referral bonus would also be in play. By leveraging the referral program, new Tesla buyers can get a discount on their final payment and enjoy a 90-day trial period of Enhanced Autopilot.
Although many didn't expect this update to the Model Y, it's not surprising given the excitement around the new Model 3. What this tells us is that the Model Y refresh may not be as close as initially speculated. While these upgrades are visually exciting, they're fairly minor and can be done without major changes to Tesla's production lines. Tesla hopes to narrow the gap between the new Model 3 and the Model Y and prevent buyers from holding out for the refreshed Model Y.
This minor update to the Model Y does not include some of the major updates to the Model 3, such as ventilated seats, improved cabin materials, the new suspension or the blind spot indicator.
As the fourth quarter unfolds, it will be interesting to see how the market reacts to Tesla's latest offering and whether this evolutionary debut lives up to its billing.
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There has been extensive reporting on what the long-anticipated affordable EV option would become, and we’ve seen numerous news stories mentioning that it was delayed or even arriving on time. The executive team revealed the near-term and long-term plans for Tesla’s upcoming vehicles, and there’s definitely good news to share here.
Updated Timeline
The most important piece of news is that despite all the talk of delays from supposed inside sources, Tesla has confirmed that the plan for its more affordable model remains on schedule for production to begin in the first half of 2025. Tesla’s executive team narrowed that timeline down further - and said that they expect production to kick off as soon as June and that the new model will be in the market shortly thereafter.
While the production timeline itself is on track, Tesla did note that the subsequent ramping process will likely be slower than initially hoped, citing global tariff and financial impacts as challenges to overcome to prepare its production lines.
Hybrid Production Approach
Tesla has once again confirmed that this will not be their next-generation vehicle, built using new production methods. Instead, they outlined a relatively more pragmatic approach for this new model.
Tesla will utilize aspects of both the next-generation platform as well as some parts of its current platforms (namely the Model 3 and Model Y). This means that Tesla will produce this new vehicle on the same manufacturing lines as the Model 3 and Model Y.
This strategy allows Tesla to bring the vehicle to the market more quickly, while also managing capital expenditures more efficiently by using existing infrastructure. However, Tesla’s executive team also noted that this approach, while faster, will result in fewer cost reductions than what might have been achieved with an entirely new platform and dedicated manufacturing process.
Vehicle Design
Using these existing production lines means that Tesla’s new vehicle will likely share some considerable similarities with either the existing Model 3 or Model Y. Rather than being a radically different and smaller vehicle, this new model will resemble the overall form factor and shape of Tesla’s current core offerings, while being optimized for a lower cost.
This doesn’t mean that Tesla is forgetting the overall goal here. Their ultimate goal is to reduce the initial cost of ownership and lower monthly payments for customers while maintaining a standard of excellence and safety.
Not Unboxed
Both at this Earnings Call and previous ones, Tesla has indicated that this new vehicle will not be using the innovative unboxed assembly method, at least for the time being. That relatively unique method will be developed and implemented specifically for the purpose-built Cybercab and for future vehicles on the next-generation platform.
We’re just a few days away from May, so it won’t be long before we see more about this upcoming vehicle. Stay tuned.
In a follow-up move to the current US administration’s goals to introduce a federal framework for autonomous vehicles, the US Department of Transportation (USDOT) is loosening autonomy restrictions following an announcement from Secretary Sean Duffy on X. This new initiative helps streamline complex regulatory processes and foster home-grown innovation.
From the Wright Brothers to the first astronauts on the moon, our nation has always been at the forefront of transportation technology.
That’s why today we're unveiling a new Automated Vehicle Framework from @USDOT’s Innovation Agenda ⬇️ ⬇️ pic.twitter.com/W3kbMUwQSn
As part of the broader upcoming USDOT Innovation Agenda, the newly unveiled AV Framework is designed to promote American innovation and strengthen domestic engineering while maintaining existing safety standards. The framework centers around three key principles:
Prioritize Safety
Unleash Innovation
Enable Commercial Deployment
To kickstart this AV framework, USDOT announced two initial steps focused on streamlining processes and expanding opportunities.
Crash Reporting Requirements
Under the first principle to Prioritize Safety, the National Highway Traffic and Safety Administration (NHTSA) will maintain its Standing General Order requiring crash reporting on Advanced and Automated Driver Assistance Systems (ADAS and ADS).
However, the reporting process will be streamlined following feedback from AV innovators, likely including Tesla. The goal here is to focus on collecting critical safety information while removing unnecessary or duplicative items from the reporting process, thereby reducing the burden without compromising safety.
Cutting Red Tape
Directly tied to the second principle of Unleash Innovation, the framework also seeks to slash red tape. The first step here is the expansion of the Automated Vehicle Exemption Program, or AVEP. This program allows manufacturers to petition for temporary exemptions from certain federal motor vehicle safety standards (FMVSS) for testing or deployment purposes.
Previously, the standard excluded domestically produced vehicles. Now, domestically produced AVs will not need to meet FMVSS, which will broaden the scope for manufacturers to test more innovative and unique designs and technologies.
Single National Standard for AVs
Finally, tied to the third principle of Enable Commerical Development, USDOT intends to move the United States closer to a single national standard for autonomous vehicles. This aims to prevent a confusing and inefficient patchwork of state-level or city-level laws and regulations, which can create hurdles for companies attempting to innovate, deploy, and scale their technology.
A unified standard across the United States also means that Canada and Mexico will likely be able to follow, as they share homologization standards across North America, including for vehicle crash safety and some autonomy regulations.
What This Means for Tesla
These framework changes will likely have a substantial impact on Tesla. The move towards a national standard is potentially the most impactful change, as Tesla identified regulatory hurdles as one of the most significant challenges it will face with the deployment of both Unsupervised FSD and its Robotaxi network.
The reduction of FMVSS requirements and streamlined reporting will likely play a role in the future as well. The FMVSS requirements are probably already being worked on, if not already met, by the Cybercab and other vehicles in Tesla’s lineup.
Meanwhile, the streamlined reporting will be helpful once Tesla officially launches its Robotaxi network in June.