Tesla Gears Up To Release Revamped Model Y: What's Going On Wednesday?

Tesla Inc TSLA is gearing up to unveil a new version of its popular Model Y vehicle as it battles for EV market share amid increasing competition in the space, especially in China.

What To Know: According to a Bloomberg report citing people familiar with the matter, Tesla is currently preparing to release a revamped version of its Model Y and the company is targeting mass production as soon as the middle of 2024.

Tesla has pulled several levers this year in an attempt to sustain growth amid a waning demand environment. The EV maker introduced a series of price cuts across its vehicle lineup and even refreshed vehicle models, including the Model Y, as recently as October. 

The upcoming 2024 version of the Model Y is expected to sport much more "obvious" changes to both the interior and the exterior than the refresh from a few months ago.

The first revamped Model Ys are expected to be produced via the second phase of Tesla's Giga Shanghai. People familiar with the matter said the plant will suspend production for about a week during the New Year holiday for upgrades. Further upgrades will have to be made before the new version of the vehicle can be mass produced. 

The news comes just months after Tesla turned in its first quarter-over-quarter decline in deliveries since 2020. The Bloomberg report indicates that competitor BYD is set to surpass Tesla as the new leader in global EV sales as soon as this quarter. 

Tesla's Shanghai factory currently accounts for more than half of the company's global deliveries. Model Ys also make up more than 75% of Tesla's overall sales in China. Tesla is due to report deliveries for the fourth quarter next week.

Check This Out: Tesla Set To Surpass Q4 Delivery Target? Top Analyst's Confidence Soars For Bullish 2024 On 'Strong Data'

Morgan Stanley analyst Adam Jonas reiterated Tesla with an Overweight rating on Wednesday and maintained a price target of $380, which could be helping fuel some of the move in Tesla shares Wednesday. 

TSLA Price Action: Tesla shares were up 2.36% at $262.60 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Tesla.