The new Model Y has a Cybertruck-like light bar. The noticeable change could help convince car buyers to upgrade.

• Tesla launched a redesigned Model Y in China with a revamped Cybertruck-like look.
• The new model comes as Tesla reported a year-over-year sales decline amid EV market challenges.
• It’s similar to Apple’s approach to improving a product rather than creating a new one.

Tesla’s new look for the Model Y in China has a Cybertruck-like design, a noticeable change that could be just what Tesla needs to refresh its aging car lineup.

Tesla’s new Model Y boasts a redesigned exterior, along with updated suspension, wheels, and tires. It’s also quieter and more efficient and has an 8-inch rear touchscreen. The company said on its website that it includes “soft-touch textiles” that give passengers the feeling that they’re “floating in space,” drawing inspiration from other futuristic Tesla designs.

It’s not far off from Telsa’s Model 3 redesign in 2023, which introduced a more luxurious and minimalist aesthetic. The upgrade similarly featured a quieter cabin and a rear screen display. The front end was made sleeker with slimmer headlights and a new wheel design. It also came with a redesigned dashboard and steering wheel.

While the new Model Y’s design isn’t nearly as radical as completely new models like the Cybercab or Cybertruck, that might be intentional. Sometimes drastically changing the look of a vehicle can be polarizing. One Cybertruck driver previously told BI he’s owned all Tesla models but only faced negative reactions on the road with his Cybertruck. The YouTuber was even told by a sponsor that he couldn’t feature his truck in a video because of its polarizing nature.

The refreshed model will still generate conversation about Tesla’s most popular vehicle, which is one of the world’s best-selling cars. The new Model Y could stick out more on the road and help car buyers broadcast they’re in the latest Tesla, which may help boost sales or convince existing Model Y owners to upgrade their vehicles.

It’s similar to Apple’s approach with the iPhone, where the company has stuck with enhancing the model rather than building a new phone product line. Similar to Apple, Tesla offers frequent over-the-air software updates. When it comes to hardware updates, though, Tesla often offers a revamped design and enhanced features rather than creating an entirely new vehicle.

The new model announcement comes after the company reported its first year-over-year decline. The car giant said on January 2 that it sold around 1.79 million cars in 2024, slightly under 2023’s 1.8 million. While Tesla’s 2024 fourth-quarter deliveries increased by over 11,000 from the year prior, it still fell short of analyst expectations by about 14,430.

It’s been a challenging time for the EV industry overall, which has slowed in the last couple of years due to factors including limited charging infrastructure and a lack of affordable options. President-elect Donald Trump’s upcoming inauguration adds further uncertainty to the landscape, as he has vowed to eliminate EV tax credits.

The Model Y refresh in China comes at a pivotal moment for Tesla, as the EV giant faces increasing pressure from competitors like BYD. BYD has recently experienced surging demand, and is challenging Tesla’s dominance in the country.

While the new model hasn’t launched yet in the US, it’s giving investors something to look forward to in 2025, in addition to a new lineup of cheaper EVs.