Tesla to launch refreshed Model Y production in January?

According to a Chinese media outlet, Tesla will begin mass production of its refreshed Model Y at its Giga Shanghai factory next month. The updated Model Y, codenamed ‘Juniper,’ is the world’s best-selling car. It will feature a range of design and performance enhancements aimed at keeping the popular SUV ahead of the competition.

The facelift will follow a similar strategy to the Model 3 Highland, which launched in 2023 with upgrades to its design, battery capacity, and self-driving capabilities. Tesla plans to update the interior, exterior, battery performance, motor efficiency, and self-driving technology for the Model Y.

Six-seater version by the end of the year

The news broke by a local Chinese media outlet, LatePost, which added that Giga Shanghai will also begin producing a new six-seat version of the Model Y, but only with deliveries scheduled for the fourth quarter of 2025.

This new configuration is expected to have a seating layout similar to the Model X, with two captain’s chairs in the second row and a three-seat bench in the rear. The six-seater is intended to appeal to larger families and fleet operators looking for a more spacious EV option.

Tesla’s Giga Shanghai, which began operations in 2019, is the company’s largest manufacturing facility. It has an annual production capacity of about one million vehicles and currently produces the Model 3 and Model Y.

Global star performer

The Model Y is essential for Tesla. In 2023, it overtook the Toyota Corolla as the world’s best-selling car—all drivelines combined. It is the best-selling electric car in many regions, including China and Europe. The refreshed model must strengthen Tesla’s dominance.

This is more precarious than ever. The latest sales numbers from ACEA (November) show a decline in electric car sales, but if the poor performance from Tesla is subtracted (-13.7 %), those registration numbers are positive (+ 1.3%).

A sales dip for a car model launched four years ago isn’t unusual and is a good reason for the arrival of Juniper, but one can’t help but wonder if Musk’s support for Trump isn’t showing up in these registration data. The next quarter will tell, especially if the facelifted Model Y doesn’t live up to its commercial reputation.

Tesla seems confident. Reports from Reuters indicate that the EV maker has instructed its suppliers to prepare for a surge in Model Y production at Giga Shanghai. The company reportedly aims for double-digit production growth in 2025 as it introduces the facelift.