US electric vehicle maker Tesla is working on launching a revamped version of its Model Y from its Shanghai plant, Bloomberg News reported, citing people familiar with the matter. Mass production of the new version is expected to begin by mid-2024. The move comes at a time when domestic rivals have accelerated product launches amid heated competition and a price war. The company is currently conducting preparation work in its China factory for the same.
The latest revamp will have more obvious exterior and interior changes as compared to the October update which added a new wheel design and ambient lighting to the vehicle. The first batch of the revamped Model Y SUVs will be produced in the second phase of the Shanghai factory. The company will be suspending production for about a week over the New Year’s holiday for a partial upgrade. Some adjustments will need to be made in the factory before starting the mass production of Model Y.
Tesla’s Shanghai factory currently has an annual capacity of more than 950,000 vehicles, its largest in the world, according to the company’s third-quarter financial report. Apart from the Model 3, the plant produces the Model 3 sedan. No other Tesla model is built at the plant. The Gigafactory began operations at the end of 2019 and began deliveries of the locally produced Model 3 in January 2020 and the locally produced Model Y in January 2021.
Earlier in September, Tesla unveiled the revamped version of the Model 3, which was internally codenamed Highland, in China. By mid October, the company began official sales of the sedan and later begun its deliveries in China. In the same month, Tesla launched an updated Model Y in China, with unchanged pricing but minor updates to features. However, the latest revamp is expected to sport some obvious changes. Model Y remains one of the best-selling EVs in China, but it’s also seeing a growing number of competitors.