Tesla announced that its redesigned Model Y SUV will arrive in the United States, Canada and Mexico in March, with a starting price just under $60,000.
The news comes just two weeks after Tesla first revealed the new Model Y and announced it would arrive in China and other Asian markets, also in March. Thursday’s announcement means the company is effectively launching the facelifted SUV at the same time around the world, a departure from the several-month gap between the facelifted Model 3 sedan’s Asia and North America launch in late 2023 and beginning of 2024.
The redesigned Model Y launches at a crucial time for Tesla, which delivered fewer vehicles in 2024 than in 2023. Tesla has repeatedly warned investors that it stands between “two major waves of growth” stemming from the Model Y’s success and has promised which will launch mysterious new models intended to be built on existing production lines. These models will likely be cheaper than Tesla’s current offerings (which start in the low $40,000 range), but it’s unclear by how much.
CEO Elon Musk has hinted that these new models, in addition to the Cybercab presented last October, will help bridge the company’s evolution from a car manufacturer to a robotics and artificial intelligence player.
But at the same time, Tesla’s vehicle lineup is aging. Tesla has now updated each of its core vehicles – the Model S and 3 sedans and the Model X and Y SUVs – but has only launched one truly new model in the past four years, the Cybertruck. Although it will become the best-selling electric truck in the United States in 2024, the Cybertruck did little to boost the company’s profits last year, and it doesn’t appear to be the runaway success Musk was hoping for.
The new look Model Y may offer some relief, although it will come at a higher price than existing versions. The starting price for the “Launch Series” special edition, which is an all-wheel drive variant, is $59,990. This gives buyers a battery with 320 miles of range and includes Tesla’s most advanced driver-assist software, which it calls “Full Self-Driving (Supervised)” — typically an $8,000 option. The older Model Y currently starts at $44,990 for a 337-mile rear-wheel-drive version.
The new Model Y’s most noticeable changes are on the exterior, where the racy front fascia has been ditched in favor of a narrower nose with a thin light bar extending across the hood. The rear of the vehicle is also now equipped with a light strip that extends across the entire width.
Inside the refreshed SUV, Tesla added a configurable light strip that surrounds the cabin. There’s a new touchscreen for the rear passenger and some quality-of-life upgrades like power rear seats and an improved suspension.
