Tesla starts sales of revamped Model Y in U.S. for about $60,000

Tesla will start deliveries of a revamped version of its Model Y SUV in the U.S. in March, according to new listings on the company’s website.

The Model Y Juniper has a price tag of $59,990, not including a federal tax credit of $7,500 for new electric vehicle purchases. It features a redesigned fascia, front and rear light bars, and an upgraded interior with ventilated seats, reclining second-row seats and faster Wi-Fi, the website shows.

Tesla began taking orders for the new Model Y variant from customers in Canada and Europe on Thursday, and started sales in China about two weeks ago. CEO Elon Musk shared a video from the Tesla account on X Thursday night showing off the new Model Y.

Tesla is looking to revitalize its core automotive business, which faces increased competition across the globe. Executives are expected to discuss Tesla’s fourth-quarter and year-end results on Wednesday after markets close.

Tesla’s last new model, the angular steel Cybertruck, began rolling out to customers at the end of 2023. While it became the bestselling electric truck in the U.S. last year, sales didn’t make up for a decline in overall deliveries, which fell for the first time in 2024.

Musk, who also runs SpaceX and owns social media site X, has been at the center of attention in recent months because of his hefty financing of President Donald Trump’s 2024 campaign and his position in the newly elected president’s inner circle.

After his inauguration Monday to begin his second White House term, Trump signed an executive order indicating he will likely repeal the federal electric vehicle tax credit, which was approved by Congress during the Biden administration as part of the Inflation Reduction Act. Tesla has long benefited from the government-supported incentives, but ending the credits will likely have a more harmful impact on competitors in the EV market.

Before the release of the new Model Y variant, Musk’s political rhetoric, along with Tesla’s aging lineup, had led to a decline in the company’s reputation, according to research from Brand Finance.