Investing.com– Tesla Inc (NASDAQ:TSLA) launched a revamped version of its Model Y crossover SUV in China on Friday with updated exteriors and interiors and a longer claimed range, as the electric vehicle maker grapples with heightened competition in the country.
Tesla said the new Model Y will come in two variants, starting from 263,500 yuan ($35,900) for the rear-wheel-drive, and 303,500 yuan for the all-wheel-drive version, which will also sport increased range.
Deliveries of the new Model Y, which updates Tesla’s most popular model in China, will begin in March.
The rear-wheel-drive version will come with a battery capacity of 62.5 kilowatt/hours and has a claimed range of 593 kilometers, Tesla said, while the all-wheel-drive version will have a battery capacity of 78.4 kwh with a claimed range of 719 km.
The Model Y is Tesla’s most popular car in China, and has been manufactured at Tesla’s Shanghai Gigafactory since 2020.
China is Tesla’s second-largest market, with the company selling a record-high 657,000 cars in the country in 2024.
But despite the record sales, Tesla has been steadily losing market share in China, amid heightened competition from domestic players such as BYD (SZ:002594) and new entrant Xiaomi (OTC:XIACF).
Tesla’s margins were also eroded by a bitter price war in China, which the EV maker escalated over the past two years by steadily slashing its prices.