Tesla to launch Model Y facelift codenamed Juniper: sources

The revamp of the Model Y means Tesla is expected to roll out a new version of its best-selling vehicle within the next two years, responding to pressure from markets such as China and the United States to make an apparent restart of its best-selling model in the United States. Faced with an increasing number of choices for EV buyers.

The automaker has yet to comment on its product strategy or any planned model changes. Tesla had no immediate comment when asked by Reuters about its plans for the Model Y, the best-selling vehicle in California, China and Europe last year.

Chief Executive Elon Musk said he would discuss the third part of the electric carmaker’s “master plan” when the company holds an investor day event later on Wednesday.

Tesla is already working to reorganize its Shanghai assembly plant in preparation for an improved version of the Model 3 sedan, a project Tesla has code-named Highland, according to Reuters.

According to people familiar with the matter, the highland version of the Model 3 is expected to go into production in Shanghai in September.

With Highland, Tesla aims to reduce production costs and improve the appeal of its electric sedan, which will first go on sale in 2017, people involved in the project said. There will also be changes to the exterior and powertrain performance, with a focus on improving production efficiency, they said.

Tesla has separately solicited quotes from suppliers for exterior and interior components of an improved Project Juniper version of the Model Y that will go into production next year, two people familiar with the matter said.

Production is expected to start in October 2024, one of the people said.

It’s unclear how thorough the makeover will be, or what specific changes or improvements Tesla hopes to bring with the new Model Y.

At an investor day event scheduled for Wednesday at its Texas Gigafactory, Tesla said it would share details of its next-generation vehicle platform, which Musk said will produce cars that cost about Tesla. Pull half the base cost of the current car.

Tesla also said it would discuss long-term expansion plans, capital allocation and other issues.

The leading electric car maker faces increasing competitive pressure in China, its second-largest market after the United States, even after cutting prices.

Analysts say that is in part because it is seen as lagging behind rivals in launching new models, improved navigation or luxury interiors, which are what car buyers in the world’s largest electric vehicle market are looking for.

The first deliveries of the Model Y makeover to customers in 2020 will mean changes to the production and supply of cars currently being built in all of Tesla’s major production centers (the US, China, and Germany).

Compared with traditional automakers, which tend to make incremental annual changes to vehicles before launching all-new versions, Tesla has accelerated the pace of change with its electric vehicles.

Analysts say Tesla often makes changes to its electric vehicles through software updates and sometimes hardware changes to add features, improve performance or reduce production costs.

For example, Tesla announced Wednesday that it had made changes to the suspension system of the China-made Model Y since January to make the ride smoother, and Tesla fans applauded the update on social media.

Earlier this week, Tesla’s factory near Berlin set a new production record, equivalent to an annual output of more than 200,000 Model Y vehicles, the company said. That was three weeks ahead of an internal production target reviewed by Reuters.

First published date: March 1, 2023 at 14:59 PM CST