Refreshed Tesla Model Y goes into production at Giga Berlin

According to the latest reports, Tesla has begun production of its updated Model Y at its Gigafactory in Gruenheide, near Berlin. This is a fairly quick rollout since Tesla only unveiled the new Model Y last week, and the expectations were that it would take a few months to reach European and US markets.

The updated Model Y is designed to improve the driving and passenger experience. Ventilated front seats offer increased comfort, a rear-seat infotainment screen will keep passengers busy, a softer suspension, and blind spot monitors deliver added safety. In addition, the Model Y now has new wheels, quieter tires, and improved sound insulation for a more refined ride.

This is the Model Y's first major refresh since its 2020 debut, following in the footsteps of the Model 3 sedan, which received updates in 2023. While European pricing details are expected to be released with the update of Tesla's ordering system, the current Model Y models in Germany range from $49,920 to $61,020. Tesla's German website only accepts orders for Model Y on finance or lease - outright purchase option is disabled, suggesting the imminent release of the updated model.

Tesla recently opened orders for the refreshed Model Y in the entire Pacific and Asia market, where the updated long-range model starts as low as $35,900 (China), and boasts an increased range of 447 miles, compared to the previous 428 miles.

The updated Model Y, known internally as "Juniper," is crucial for Tesla to regain its sales momentum. Tesla delivered 1.79 million vehicles globally in 2024, recording a drop from the 2023 figures.

Industry analysts look at this refresh as essential for Tesla to stay competitive. UBS analyst Patrick Hummel noted that the Model Y was viewed as an aging product. He added that the facelift is not expected to be a "game changer" that will disrupt the segment. If he's right, this won't be good news for Tesla.

Tesla still faces a challenging market, with or without the updated Model Y. Data from market researcher Dataforce reveals that European sales of the Model Y fell 48 percent in the first 11 months of 2024, totaling 181,781 units.

Tesla's Gigafactory Berlin-Brandenburg currently produces the Model Y for European markets, while other production facilities in Fremont, California; Austin, Texas; and Shanghai continue to manufacture the vehicle for their respective regions.

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