Tesla (TSLA) appears to be working on a new and improved version of its most popular offering, the Model Y, at its factory in China with plans for mass production by mid-2024. TSLA shares rose on Wednesday.
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The global electric vehicle giant is preparing to unveil an updated Model Y in China, Bloomberg reported late Tuesday. The Model Y is the best-selling vehicle in Tesla's lineup, and makes up the bulk of the company's vehicle deliveries in China and globally.
Tesla is currently making preparations at its factory in China for the revamped Model Y, with mass production set to begin as early as mid-2024, according to Bloomberg. As part of this renovation, the second phase of the Shanghai factory will be closed for a week around Lunar New Year for improvements.
The 2024 version of the Model Y will reportedly feature more than the exterior and interior improvements that Tesla worked on for the car's minor refresh in October.
Tesla China on Wednesday refuted the Bloomberg report, issuing a statement to local media in China.
The decision announced by the global electric car giant to renew the Model Y comes after the launch of a new Model 3, in an attempt to update its offerings in China's competitive electric car market.
Rumors about a “Project Juniper” Model Y update have been circulating for months.
Warren Buffett backed BYD (BDDF) is Tesla's biggest competitor in China which has just decided to open a factory in Europe.
Tesla unveiled its new Model 3 in China on September 1, with official sales starting on October 19. The company began deliveries of the Model 3 Highland on October 26 in China, with European deliveries also beginning. The electric car giant is expected to begin manufacturing the updated Model 3 at its Fremont factory in early 2024.
Tesla China recently announced that it has sold out the Model Y for the 2023 model year, in an apparent reference to the car's standard range.
Tesla stock performance
TSLA stock rose 1.8% to 261.22 on Wednesday during market action. On Tuesday, TSLA advanced 1.6% to 256.61. In December, TSLA stock rose nearly 9%, finding support at its 10-day moving average.
Tesla stock fell after the electric car giant reported worse-than-expected third-quarter earnings and revenue on October 18. However, Tesla stock is building the right side of a double-bottom base giving it a buy point of 278.98, according to Market Smith analysis.
Technically, Tesla stock now has a thin handle on the weekly chart, giving it a buy point at 259.84. But ideally, the handle will have some depth, perhaps undermining the December 20 low and testing the 21-day moving average at least.
So far in 2023, Tesla stock has gained more than 100%, easily outperforming the broader S&P 500 index.
Tesla stock ranks fourth in the 35-member IBD Automotive Manufacturers Industry Group. The S&P 500 component has a Composite Rating of 80 out of the best possible 99. Tesla stock also has a 90 Relative Strength Rating and an 88 EPS Rating.
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