Tesla has announced that its redesigned Model Y SUV will be available in the U.S., Canada, and Mexico starting in March, with a starting price just under $60,000.
This announcement comes just two weeks after Tesla unveiled the updated Model Y for China and other Asian markets, also slated for a March release. This global launch signals a shift from the staggered rollouts seen with the refreshed Model 3 sedan in late 2023 and early 2024.
The redesigned Model Y comes at a critical time for Tesla, which saw a decline in vehicle deliveries in 2024 compared to the previous year. The company has acknowledged that it’s in a transition phase between two major growth periods, following the success of the Model Y. Tesla has also teased upcoming models expected to be cheaper than their current offerings, but details on pricing are still unclear.
CEO Elon Musk has hinted that these new models, along with the teased Cybercab, will help Tesla evolve from an automaker to a robotics and AI company. However, with the aging lineup of Tesla’s core vehicles — including the Model S, 3, X, and Y — the company has only launched one new model in the past four years: the Cybertruck. Despite becoming the top-selling electric truck in the U.S. in 2024, the Cybertruck did not significantly impact Tesla’s profits, and it hasn’t achieved the massive success Musk expected.
The updated Model Y may offer some relief, though it comes with a higher starting price than the previous models. The special edition “Launch Series” all-wheel-drive version starts at $59,990, offering a 320-mile range and Tesla’s most advanced driver-assistance system, Full Self-Driving (Supervised), which usually costs an additional $8,000. In comparison, the older Model Y starts at $44,990 for a 337-mile rear-wheel-drive version.
The most noticeable updates to the new Model Y are on the exterior, where the previously rounded front has been replaced by a sleeker, more angular design with a thin light bar across the hood. The rear now also features a light strip that spans the full width of the vehicle. Inside, the Model Y now includes a configurable light strip around the cabin, a new rear-passenger touchscreen, and several quality-of-life improvements like powered rear seats and enhanced suspension.
