Tesla’s Revamped Model Y is Reportedly Due in Early 2025

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Key Takeaways

  • A report from Tesla’s China supply chain claims an updated Model Y is scheduled for release in early 2025.
  • The refreshed Model Y is said to have 5-seat and 7-seat versions, launching in Q1 and Q4, respectively.
  • The new Model Y could have updates for Asian and European markets, similar to the updated Model 3.

A recent report from Tesla’s supply chain in China maintains that a refreshed Tesla Model Y is planned for release in early 2025.

The latest information suggests that Tesla is set to launch two refreshed Model Y variants next year. The 5-seat version, known as “Juniper,” is expected in the first quarter, while the 7-seat model will arrive in the fourth quarter.

Additionally, these models will be produced at Tesla’s Shanghai factory, known for its lower production costs. The insiders also maintain that Tesla is working on a two-box compact version of the Model Y, anticipated for release in 2025.

A three-row, seven-seat version of the Model Y is already offered in the US. However, this new version is anticipated to feature upgrades specifically tailored for the Asian and European markets. As noted in earlier reports, the upcoming Model Y refresh will likely incorporate many of the changes seen in last year’s Model 3 update.

The Extended Wait for Tesla’s Updated Model Y

According to the Chinese report, the updated Model Y’s progress is notably delayed compared to Tesla’s original timeline.

This appears to be reflected in past rumors and statements. Following the introduction of the refreshed Model 3 last year, anticipation increased for an updated Model Y. However, this refresh has apparently encountered delays.

In March 2023, Reuters claimed Tesla’s Model Y refresh was set for a 2024 release. Bloomberg corroborated this in December 2023, indicating that the refreshed model might be unveiled in mid-2024.

However, CEO Elon Musk has denied any plans for a Model Y refresh this year, indicating that if an update does occur, it’s likely to be scheduled for early next year.

After a while, the much-anticipated Tesla Model Y was spotted testing in Los Angeles, covered in heavy camouflage. Recently, a leak has uncovered some new design elements slated for the Model Y update.

With deliveries declining year-over-year, Tesla might face dwindling interest until the new Model Y and other models are released. Without a reviva, the company could have more weak sales quarters as the Cybertruck and new Model 3 have a limited impact. Additionally, competition is heating up with new entrants such as Chevy’s Blazer EV, Rivian’s R2, and Equinox EV, making the electric crossover market increasingly crowded and competitive.