Tesla launches new Model Y in US, Canada, Europe weeks after China

Elon Musk's Tesla launched a new higher-priced version of the Model Y, its best-selling car, in the United States, Canada and Europe on Thursday, weeks after it was first released in China.

The new Model Y, a long range all-wheel drive variant, will cost $59,990 in the U.S., according to the electric vehicle maker's U.S. website, 25% higher than its predecessor which costs $47,990.

The new variant comes equipped with the supervised full self-driving software, which is an optional addition in previous Model Y cars for $8,000.


Tesla will begin deliveries of the new car in March.

With the launch, Tesla now lists four versions of the Model Y in the U.S., with the new car costing the most, and even higher than the performance variant.

The new variant also has redesigned exteriors, upgraded features inside and a slightly extended range of 320 miles (515 km), according to Tesla.

Tesla first launched the Model Y in 2020 and it became the world's best-selling car in 2023. The ageing model lost some sales momentum last year, hurt by competition from rivals in China, while in other markets demand for electric vehicles has weakened.