Tesla has upped the price tag on its six-seat upgraded Model Y variant by about 30% compared to its basic class and opened the order books to customers, according to an announcement from the Musk-synonymous US electric car firm on 19 August 2025.
Available to view, the new cars “are displayed in all of our showrooms now,” a statement from Tesla declared, indicating that deliveries would start as early as September this year. Made in China, the model’s overhaul sees the new incarnation fitted with an LG Energy Solution high-performance battery – a change being described as the most significant yet in its Chinese manufacturing.
New Model Y in 60 seconds pic.twitter.com/MnZuHzCeDl
— Tesla (@Tesla) March 8, 2025
Eugene Hsiao, an analyst at Macquarie Capital speaking at Tesla’s launch event, described the price point as looking “competitive in an increasingly crowded market.” Yet, questions may be raised about the relative value of the vehicle compared to its predecessors. The SUV L version has a 751-km range and costs 339,000 yuan, the press release said, which is 8% more expensive than the current long-range edition, which has a range of just one kilometre less, at 750km.
Described as a sport utility vehicle, it is around 15 cm wider than the two-row model, meaning it can accommodate three rows. With more space in the back and parked between the standard Model Y and the larger Model X, it is expected to appeal to the same demographic as local competitors such as Li Auto Inc’s L8 extended-range model, and Huawei HIMA’s Aito M8– essentially aimed at middle-class customers in the market for a family car.
Meet the new Model Y
— Tesla (@Tesla) January 24, 2025
Maximum efficiency. Smoother rides. All-new interior.
New on the outside:
– Redesigned exterior with improved aerodynamics to unlock better range, performance & longevity
– Updated wheels, tires & brakes + retuned suspension for a smoother ride
Our… pic.twitter.com/Fk40KzvP8m
But as lower-priced EVs from Chinese competitors continue to beat Tesla on sales, the US firm recorded an 8.4% fall in Chinese customers in July. Beleaguered Tesla is battling reputational damage related to CEO Elon Musk’s government antics and activities under President Donald Trump’s administration, as well as wide ridicule of its Cybertruck pick-up, complaints over range, and failure to fully roll out promised Full Self-Driving vehicle technology, or FSD, although trials of FSD functions have been ongoing since February. Despite its share price rising over 60% in 12 months, investors have been shaken by consensus forecasts that show earnings per share (EPS) falling 30% in 2025.
Against this backdrop, the new Model Y release “seeks to make up for delays in more advanced driver-assistance features that Tesla has marketed,” according to Bloomberg. What’s more, in early August 2025, the carmaker showcased a longer-range Model 3 sedan in China, with an extended range capability of 830 km.
