Tesla launches refreshed Model Y in China to fend off domestic rivals

Tesla It announced a facelifted version of its popular Model Y in China on Friday, as the US electric car giant looks to fend off challenges from domestic rivals.

The Model Y will start at 263,500 Chinese yuan ($35,935), with deliveries starting in March. A spokesperson for Tesla China said that the new Model Y is only open for pre-sales in the Chinese market, instead of being launched globally.

Tesla’s Model Y update comes after the auto giant this month reported its the first annual decline in overall shipments for 2024.

Elon Musk’s electric vehicle company is facing strong competition around the world, from startups and traditional cars in Europe. In China, the company continues to face an onslaught of rivals from BYD to new players like Xpeng and No.

Tesla is offering a number of incentives for customers to purchase the Model Y including a 0% financing plan for five years.

This story has been updated. Please check back for more.