Tesla has unveiled a premium version of its popular Model Y, which first debuted in China. This version is now available in the US, Canada, and Europe. The new Model Y remains Tesla’s top-selling car and offers significant upgrades, including a long-range, all-wheel-drive design.
Price and Availability
The new Model Y starts at $59,990 (€57,166.0) in the US, marking a 25% price increase from the previous version, which was priced at $47,990 (€45,733.75). Unlike earlier versions, the latest Model Y includes full self-driving software as a standard feature, eliminating the $8,000 paid upgrade option.
Deliveries are set to begin in March 2025. Tesla now offers four versions of the Model Y in the US, with the premium model being the most expensive.
Enhanced Features and Performance
The premium Model Y includes several performance and design improvements. The exterior design is optimized for greater efficiency, featuring updated tyres, suspension, and wheels. Inside, the vehicle boasts front and rear touchscreens, better connectivity, and an extended signal range to enhance the driving experience.
The new Model Y also offers an impressive range of 320 miles (515 km) on a single charge. With increased storage capacity, it becomes an ideal choice for long-distance travel. These upgrades make the premium Model Y a compelling option for consumers seeking advanced features, performance, and efficiency.
Declining Sales Amid Growing Competition
Despite being Tesla’s best-selling vehicle, Model Y sales declined in 2024. Experts attribute this decline to a global reduction in EV demand and rising competition from more affordable electric vehicles, especially from Chinese automakers.
Tesla Recalls 1.2 Million Vehicles in China
In a separate announcement, Tesla disclosed a recall of over 1.2 million vehicles in China due to a software issue. The recall affects both imported and locally manufactured vehicles and concerns a problem with reverse current affecting the vehicle’s main computer board. This issue could cause malfunctions with the rearview camera, increasing the risk of accidents.
Tesla plans to fix the issue via over-the-air (OTA) software updates. However, owners of affected vehicles that cannot be fixed through software updates will be contacted directly. The recall includes 335,716 imported Model X and Model S vehicles, along with domestically produced Model Y and Model 3 vehicles manufactured between July 16, 2023, and December 14, 2024.
