The Design & Engineering Behind the New Model Y [Video]

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Tesla’s Model Y has held the title of the world’s best-selling vehicle—across all categories—for the past three years. And it takes an absolute masterstroke of engineering and design to make an even better, more popular vehicle.

In a newly released video (posted below), Tesla highlights some of the key upgrades and refinements made to the Model Y. While a previous deep dive explored the engineering details [insert link here], this latest video offers a broader look at the improvements. Let’s take a closer look.

Unique Design of the Model Y

The refreshed Model Y is all about individuality. While every Tesla model stands out in its own way, some are more similar than others. For example, the Model S and Model X share a similar front fascia design but still feel distinct. The previous Model 3 and Model Y, however, were often difficult to differentiate, even for seasoned Tesla owners.

That’s no longer the case. With the refreshed Model 3 and Model Y, the differences are clear enough to make each vehicle instantly recognizable. You’ll easily spot them on the road and distinguish them from their predecessors.

Design

The lightbar is the first thing you’ll notice about the design overhaul. Tesla aimed to give the vehicle a wider, more grounded appearance while also creating more space on the front fascia. This newfound space not only improves the vehicle’s look but also leads to some efficiency gains—more on that later.

The rear lightbar is equally striking. It’s a reflective, full-body design, marking a first in the automotive industry. The light is reflected onto a custom applique, which directs it downward, creating a puddle of red light behind the car. As Franz, Tesla’s Head of Design puts it, it gives the impression of an afterburner.

The reflective rear lightbar.

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Ride Comfort

Tesla has been focused on improving ride comfort, and the refreshed Model Y is a testament to that effort. While the original Model Y had more of a sports car-like handling, which was less ideal for family use, the new suspension design focuses on comfort by reducing impact harshness, all while maintaining Tesla’s signature steering feel and precise handling.

This is paired with in-house designed tires, developed alongside the tire manufacturer, resulting in the most efficient EV tires Tesla has ever used. With lower rolling resistance, improved handling, and reduced road noise, these tires contribute to a smoother, quieter ride.

The addition of acoustic glass across every glass surface in the vehicle, combined with upgraded sealing materials throughout the cabin and body, has led to a 20% reduction in overall vehicle noise. This is a substantial improvement for an already quiet EV.

The new silver-infused acoustic glass also reflects heat much more effectively than the older glass, reducing the strain on the vehicle’s climate system. This allows the fan to run at a lower speed, further reducing cabin noise and improving energy efficiency. Tesla has truly pulled out all the stops to make the refreshed Model Y one of the most comfortable and refined passenger vehicles on the road.

Efficiency and EPA Range

When it comes to efficiency, Tesla has meticulously reevaluated every component and design choice of the original Model Y, all while maintaining the same size and form factor that has made it a favorite for millions worldwide. The result? A 10% improvement in efficiency over the previous Model Y, which translates to more range.

The EPA recently announced the official range for the vehicle of 327 miles, beating Tesla’s estimate of 320 miles. This is an increase of 16 miles over the outgoing AWD Model Y, which had an EPA estimated range of 311 miles.

The front ducts have been widened thanks to changes in the front fascia, allowing for improved airflow over the tires and front brakes. Meanwhile, the new thermoplastic spoiler has been redesigned at the rear to be more aerodynamically efficient, contributing to the overall 10% efficiency boost. These updates improve performance and range.

Utility

The Model Y has become the ubiquitous Sports Utility Vehicle, capable of handling just about anything. In addition to improving its performance and efficiency, Tesla has also improved its practicality. The trunk opening has been enlarged, making it easier to load and unload items.

One standout feature is the power-folding rear seats. With just the push of a button, you can effortlessly fold them down or raise them back up. Additionally, the front seats automatically slide forward to create more space when you need to bring the rear seats down.

Tesla also gave the frunk a thoughtful upgrade. It now includes a new drain plug, and the bottom liner is fully waterproof—an improvement over the previous water-resistant version. This means you can fill the frunk with ice or use Tesla’s upcoming frunk cooler without worry. There’s even talk of more accessories on the horizon, and we can’t wait to see what Tesla has in store for this versatile space.

Safety

Safety has always been a top priority in Tesla’s vehicle design, and the Model Y has consistently earned 5-star crash safety ratings worldwide. It’s expected that the refreshed Model Y will continue this trend, maintaining Tesla's reputation for top-tier safety.

Additionally, the new front bumper camera offers valuable assistance for parking in tight spaces or when navigating off-road. While there’s no official word yet on whether these bumper cameras will be integrated into Full Self-Driving (FSD) or Smart Summon for the refreshed Model Y or Cybertruck, it’s definitely something to watch for in future updates.

Interior

Front and rear infotainment

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Inside the refreshed Model Y, Tesla has fine-tuned every detail to create a more premium feel. This includes the addition of ambient lighting, similar to the refreshed Model 3 and Cybertruck, as well as new materials throughout the cabin to elevate the overall aesthetic.

The redesigned heated and ventilated seats take comfort and support to the next level, which is a significant improvement for those who use the Model Y as their daily commuter. A comfortable seat can make all the difference on long drives.

In the rear, the updated infotainment system can now pair with two Bluetooth headsets specifically for the back screen. This means passengers in the rear can enjoy audio independently of the front, so if your kids want to watch cartoons, you can continue enjoying music or the news without any interruptions.

Tesla also developed new acoustically transparent materials, which are used to conceal some of the 16 speakers and the newly positioned microphones. Placing the microphones closer to the driver and front passenger’s heads improves clarity for voice recognition and phone calls.

Be sure to check out the full video below to see the meticulous design work and thoughtful improvements that went into the refreshed Model Y—it’s definitely worth a watch.

Design & engineering walkthrough of New Model Y pic.twitter.com/2jvMQOXGkM

— Tesla (@Tesla) February 8, 2025

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Tesla Q1 Update on Optimus, Batteries, and Tesla Energy

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The 2025 Q1 Earnings Call gave us the opportunity to learn about a lot of things, from Unsupervised FSD, to the Robotaxi program, to the update on the more affordable model. There was a lot of news to unpack, but there’s still more.

In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.

Optimus

Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.

First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.

Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.

Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.

Batteries

Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate. 

Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.

Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.

LFP batteries continue to be supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla can’t obtain enough and is considering potentially building an LFP production facility in North America.

Energy

Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.

Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.

Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.

There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.

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Tesla Introduces AI-Powered Phone Support for Tesla Insurance, Reducing Wait Times and Cutting Costs

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Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.

Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.

Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.

Although Tesla Insurance is currently available in just 12 U.S. states, its voice AI assistant is accessible via phone across all supported states.

What the AI is Doing

For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.

Policy Changes

The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.

Continue Where You Left Off

The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.

Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.

More AI

This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.

Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.

Tesla has recently updated this AI to offer personalized support, allowing you to ask questions such as ‘What are my vehicle service alerts?’ or ‘Does my vehicle have a heat pump?’

Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.

Roll Out to More States

While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.

Tesla may be looking to lower costs and refine the experience before it expands to additional states.

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