Tesla (TSLA.O) will not launch a refreshed Model Y this year, as announced by CEO Elon Musk in a post on social media platform X on Saturday. “No Model Y ‘refresh’ is coming out this year,” Musk stated, adding that Tesla continuously improves its cars, so even a car that is six months newer will be slightly better.
Tesla has been slow to refresh its ageing models, partly due to high interest rates dampening consumer interest in big-ticket items. Meanwhile, competitors in China, the world’s largest auto market, are introducing cheaper models. Tesla’s global vehicle deliveries fell in the first quarter for the first time in nearly four years.
Last year, Reuters reported that Tesla was planning a production revamp of the Model Y, with a target to start production in 2024. Tesla’s current models include the Model 3, Model Y, Model S, Model X, and Cybertruck. The Model 3 and Model Y are produced locally in China, while other Tesla models are not.
Sales of the updated Model 3, known as Model 3 Highland, began in China on October 19, 2023, marking the first major update to the EV model since its launch in 2017. In March of last year, Reuters reported that Tesla was preparing production modifications for the Model Y, expected to start in October 2024. The changes to the Model Y, codenamed Project Juniper, involve both the exterior and interior of the SUV, according to the report.
The Model Y is one of the best-selling models globally but appears to be facing relatively soft demand in China. Tesla’s Shanghai plant planned to cut Model Y production by at least 20 percent between March and June, Reuters reported on May 24.
