January 14, 2025
BERLIN — Tesla has started production of its refreshed Model Y for European markets at its factory in Gruenheide near Berlin.
The EV maker hopes the updated Model Y will boost its sales momentum in Germany and across Europe amid a slowdown in consumer demand for electric vehicles.
“Starting today, we are beginning to manufacture the first vehicles,” a company spokesperson told the German Press Association (dpa) on Jan. 14.
The freshened Model Y adds ventilated seats, a rear-seat infotainment screen, a softer suspension and blind spot monitors near the sideview mirrors. It also has smoother wheels, quieter tires, and a softer suspension.
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The update marks the Model Y’s first major refresh since its 2020 debut, following updates to the Model 3 sedan in 2023.
There is no word yet on European pricing, which is expected when the automaker’s ordering system is updated. Current Model Y prices in Germany range from €44,990 to €54,990.
The Model Y is also built at Tesla’s factories in Fremont, California and Austin, Texas and in Shanghai.
Tesla recently opened orders in China for the refreshed Model Y. The updated Model Y starts at $35,900 in China, a 5.4 percent increase, according to Reuters.
The Chinese model gets a small increase in range, from 688 km (427 miles) to 719 km (446 miles) for the long-range model, according to Tesla’s website.
The updated Model Y, known through its codename Juniper, is seen as critical to reverse Tesla’s recent sales slide.
Tesla delivered 1.79 million vehicles globally in 2024, nearly 20,000 fewer than in 2023.
“The facelift should address the issue that Model Y was increasingly perceived as aged product,” said Patrick Hummel, an analyst at UBS. Still, for competitors in the segment, the Model Y facelift will not be seen as a “game changer,” he said.
European sales of the Model Y fell 48 percent in the first 11 months to 181,781, according to market researcher Dataforce.
Bloomberg contributed to this report
