Tesla (NASDAQ: TSLA) announced on Thursday the release of its refreshed Model Y electric vehicle in the United States, with deliveries set to begin in March.
The announcement comes after the debut of the Model Y refresh in China earlier this month.
Tesla also announced that the new Model Y will be available in Europe and Canada.
New Pricing, New Standard Features
The updated Model Y will start at $59,900 — roughly a 25% increase compared to its predecessor.
However, the new Model Y also includes the Full Self-Driving feature, an $8,000 upgrade on the vehicle’s earlier edition, as standard.
Tesla has discounted its existing Model Y inventory to as low as $46,490.
Inside the Updated Model Y Refresh
The new Model Y features updates to the vehicle’s aesthetics and improvements to its ride quality.
The refreshed Model Y sports a redesigned exterior with sharper body lines and modernized lighting, including a full-width LED front light bar.
Ride quality has been a concern among many Tesla owners. The company says the Model Y refresh boasts improved suspension, wheels, and tires — as well as acoustic glass — for what it says will be a smoother, quieter ride.
Growing Competition for Tesla
Tesla is facing fierce competition not only from Chinese EV makers but also from legacy auto companies such as BMW, Cadillac, and Mercedes-Benz that are introducing EVs with exceptional build quality and interior design, priced similarly to Tesla’s Model S and Cybertruck.
The Model Y combines Tesla’s industry-leading technology with a more contemporary design. The question, however, remains: Will it be enough to boost Tesla sales?
The company is losing its first-mover advantage, with its market share among EVs in the U.S. falling below 50% for the first time. Amid all this, the behavior of founder and CEO Elon Musk has become more controversial, diminishing the value of his brand and alienating potential customers.
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