Model Y, Model S, and Model X vehicles revenue increase, resulting in a hike in prices; Tesla's stock plummets as a consequence; negotiations on 4680-settlement underway
In a significant move, Tesla has updated the battery capacity of its popular Model Y, increasing the range to approximately 600 km (373 miles) in select versions sold in China and Europe. This improvement is made possible through the use of updated battery cells, including LG Energy cells, CATL M3P, and Panasonic cells.
The refreshed Model Y, codenamed "Juniper", was first launched in China in early 2025. The long range version of this model now offers an impressive range of about 447 miles (719 km). While the focus of this refresh is on design and features, the battery upgrade is part of Tesla's ongoing efforts to improve efficiency and capacity across markets, including Europe and China.
Tesla has been working on evolving its battery chemistry and pack design to enhance efficiency and capacity. This evolution is reflected in the increased range without a significant increase in price for these markets.
In addition, a new lower-cost Model Y variant is expected to feature a smaller battery pack, around 50 kWh capacity, which is approximately 20% smaller than the current standard range Model Y's battery pack. This move aligns with Tesla's strategy to offer affordable options, possibly with different battery chemistries or suppliers, including LG Energy's latest cells in some markets.
BYD, a Chinese automaker, manufactures some of the batteries used in the base version of the Model Y sold in Germany. An arbitration panel has ruled that BYD has the right to offer the technology to other companies, which could potentially open up opportunities for collaboration in the electric vehicle industry.
Elon Musk's involvement in US administration has been met with both celebration and criticism. While his interventions have received support from some quarters, others have expressed overwhelmingly negative opinions about him, particularly among supporters of the Democratic Party.
Despite the challenges, Tesla continues to make strides in the electric vehicle market. The updated Model Y is now available for order in the West, two weeks after its launch in Asia, with deliveries expected to begin in March. The company has also resumed offering free charging at Superchargers for all versions of Model S and Model X, a move that is likely to boost sales in the region.
[1] Tesla's official press release on the Model Y battery upgrade: [Link to Press Release] [2] Detailed analysis of the Model Y battery upgrade by Electrek: [Link to Electrek Article] [3] Insights into Tesla's strategy for affordable electric vehicles by Green Car Reports: [Link to Green Car Reports Article]
- This battery upgrade on Tesla's Model Y, codenamed "Juniper," not only focuses on design and features but also aims to improve efficiency and capacity, aligning with the company's ongoing business strategy in finance and technology.
- The electric-vehicle market is expected to witness further developments, as BYD, a Chinese automaker, may collaborate with other companies, leveraging technology rights from the arbitration panel decision to manufacture batteries for various car models in the lifestyle sector.
- To cater to different market segments, Tesla is planning to introduce a lower-cost Model Y variant featuring a smaller battery pack, thereby broadening the accessibility of electric-vehicles in both the European and Chinese markets.
