Tesla opens redesigned Model Y in China

Tesla launched a new version of the electric SUV 2025, the world’s most popular electric vehicle, in China on Friday.

The best-selling car has been revealed with new styling ahead of Australian arrivals, which are due in May. The style has an updated interior and a longer driving range.

As part of its strategy, Tesla expects a new look and increased features to help the company recapture market share from rival devices such as Xiaomi (1810.HK).

This is the largest update since the Model Y opened in the US five years ago. The update accepts key components introduced with the Model 3 sibling, which included a touchscreen gear selector.

According to the US automaker, Model Y is priced at $35,900. It is 5.4% more expensive than the previous version in China. Deliveries are set to start in March in China.

Tesla, which first launched the Model Y in 2020, became the best-selling car in the world in 2023.

In 2020, the company was the largest maker in China, but Chinese EV rivals have made inroads gradually.

Xiaomi stormed the electric car market last year, delivering over 130,000 of its first model, the SU7. It is a consumer electronics maker. Xiaomi will open its first SUV, the YU7, in June or July, directly challenging the Model Y.