Tesla (TSLA) has introduced a revamped version of its popular Model Y in the US and Europe, aiming to rejuvenate its product lineup and reinvigorate sales. Announced late Thursday night, the new Model Y, dubbed the “Launch Series,” comes with updated exterior and interior designs, improved suspension tuning, and various other enhancements. Starting at $59,990 before incentives, the Launch Series will also be available for lease at $699 per month with $2,999 down. Deliveries are set to begin in March.
Currently, the all-wheel-drive Launch Series is the only trim available in this refreshed lineup. Meanwhile, Tesla continues to sell the older Model Y, with pricing starting at $44,990 for the long-range rear-wheel drive trim, $47,990 for the long-range all-wheel drive, and $51,990 for the performance all-wheel drive. However, the company has not specified how long these older versions will remain available or when they might be phased out.
The refreshed Model Y, which first debuted in China in January, now features Cybertruck-inspired design elements, including angular styling and Cybercab-esque light bars on the front and rear. This updated aesthetic signals a shift in Tesla’s design language as seen in the Cybertruck and other upcoming models.
Tesla is banking on these updates to regain momentum after a challenging year. The company’s stock remained relatively flat in early trading on Friday, following news of the Model Y launch. In 2024, Tesla delivered 1.78 million vehicles, falling short of analyst expectations of 1.8 million and marking its first year-over-year decline compared to 2023’s 1.8 million vehicles delivered. The shortfall highlighted increasing competition, shifting demand, and broader global economic challenges.
Last year’s launch of the refreshed Model 3 sedan was well received, helping boost production efficiency and reduce costs, as noted in Tesla’s Q3 2024 earnings report. A similar response to the updated Model Y could bolster Tesla’s prospects in 2025, especially as it plans to introduce a lower-priced EV and other new vehicles aimed at achieving a 50% growth rate over 2023.
Tesla’s next major update will come on Wednesday, Jan. 29, when the company reports its Q4 and full-year earnings. For now, all eyes are on the Model Y Launch Series and its potential to drive Tesla’s recovery in a competitive electric vehicle market.
