Tesla, the world’s most valuable automaker, is planning to roll out an updated version of its Model Y electric SUV from its Shanghai factory in 2024, according to a Reuters report. The new Model Y, codenamed ‘Tesla Juniper’, will feature a redesigned exterior, interior, and specifications, and will be exported to North America and other markets.
Tesla has been ramping up its production and sales of electric vehicles, as it aims to achieve its ambitious goal of selling 20 million EVs in 2030. The Model Y, which was launched in 2020, is the company’s best-selling model, accounting for more than half of its global deliveries in the first quarter of 2023. However, the compact SUV faces increasing competition from cheaper and newer rivals, especially in China, the world’s largest EV market.
To maintain its edge, Tesla is preparing to launch a refreshed version of the Model Y, which will feature a new look and improved performance. The new Model Y will sport a mildly updated exterior, with newly designed bumpers and wheels, and possibly two fresh colors: Ultra Red and Stealth Gray. The interior will also get a makeover, with a new dashboard, a swiveling touchscreen infotainment system, and a steering yoke option. The specifications of the new Model Y are not yet revealed, but it is expected to have a longer range, faster acceleration, and better efficiency than the current model.
The new Model Y will be produced at Tesla’s Shanghai gigafactory, which is the company’s biggest and most cost-efficient plant. The Shanghai factory, which started operations in 2019, has a capacity of 450,000 vehicles per year, and currently produces the Model 3 and Model Y for the Chinese market. Tesla plans to export the new Model Y from China to North America and other regions, marking the first time it will ship cars to its largest market from its overseas plant.
Tesla to invest more in expanding its production capacity
Tesla’s plan to launch the new Model Y from China is part of its broader strategy to increase its production capacity and lower its costs. The company raised its capital expenditure forecast for 2023 to between $7 billion and $9 billion, up from its previous outlook of $6 billion to $8 billion. It maintained the spending outlook for the next two years at $7 billion to $9 billion.
Tesla is investing heavily in expanding its existing and new factories, as well as developing its own battery technology. The company is building gigafactories in Berlin and Austin, which are expected to start production in 2024. It also plans to open a gigafactory in Mexico, where it will produce its Cybertruck and Semi models. In addition, Tesla is working on its 4680 cell, which will enable it to make enough batteries for 2 million light-duty vehicles annually. The 4680 cell, which was unveiled in 2020, promises to increase the energy density, power, and range of Tesla’s EVs, while reducing the cost and complexity of battery manufacturing.
Tesla’s efforts to boost its production and innovation are aimed at meeting the growing demand for EVs, as well as fending off the competition from legacy automakers and new entrants. Tesla has a dominant position in the global EV market, with a 24% share in 2022. However, it faces challenges from rivals such as Volkswagen, Toyota, Hyundai, and GM, which are ramping up their EV offerings and investing in battery technology. Tesla also has to contend with emerging players such as Nio, Xpeng, and Li Auto, which are gaining popularity in China and abroad.
Tesla’s CEO Elon Musk has said that the company’s mission is to accelerate the transition to sustainable energy, and that it welcomes the competition from other EV makers. He has also said that Tesla’s goal is to make its EVs affordable and accessible to the mass market, and that it will continue to lower its prices and improve its quality. With the launch of the new Model Y from China, Tesla hopes to achieve both its vision and its targets.