Tesla (TSLA) has launched a revamped version of its popular Model Y electric vehicle in China as competition heats up in the nation of 1.4 billion people.
The new Model Y will start at 263,500 Chinese yuan ($35,935 U.S.), with deliveries set to begin in March of this year.
The price is about 5% more expensive than previous versions of the Model Y that were sold in China.
Tesla says that the new version of the Model Y is only available for pre-sale in China and is not being launched in other markets for the time being.
The revamped Model Y is being introduced after Tesla recently reported its first ever annual decline in vehicle sales for 2024.
Tesla faces increased competition around the world from both start-up electric vehicle makers and traditional automakers.
The Chinese market is particularly competitive with rivals such as BYD, Xpeng (XPEV) and Nio (NIO) taking market share.
Tesla is offering incentives for people in China to buy the refreshed Model Y, including a five-year 0% interest financing plan.
The new Model Y can accelerate from 0 kilometers per hour to 100 kilometers per hour in 4.3 seconds, according to Tesla.
The long-range version of the vehicle has a further driving range on a single battery charge than its predecessors, though Tesla hasn’t said how far the new Model Y can drive.
This is the first new vehicle from Tesla since the company began delivering the Cybertruck in late 2023, which has a starting price of about $80,000 U.S.
Investors and analysts have been calling on Tesla to introduce a more affordable, mass-market electric vehicle in North America and Europe to help boost sales.
Tesla has said that a new affordable model could be launched in the U.S. later this year.
The stock of Tesla has gained 69% in the last 12 months to trade at $394.94 U.S. per share.
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