A new chapter is unfolding in the fiercely competitive Chinese market: Tesla apparently plans to produce a revised version of its successful Model Y at its Shanghai factory. According to the news agency "Bloomberg," mass production of the new model is expected to start in mid-2024.

However, confirmation from the electric car manufacturer from the USA is still pending and the cited sources remain anonymous.

However, the hints indicate a further development of the current Model Y, which is supposed to have both external and internal changes. The Chinese market is of enormous importance to Tesla, as according to Bloomberg, over half of the company's worldwide deliveries are produced in Shanghai. Particularly, the Model Y enjoys great popularity in China and according to Bloomberg data, it accounts for 75 percent of Tesla's total deliveries in China.

The battle for dominance in the Chinese market is fiercely contested. Chinese electric vehicle manufacturer BYD has recently introduced its new Song L, an electric SUV, which directly competes with the Tesla Model Y. Due to its lower price, it could become increasingly attractive in the aggressive price war in China.

To keep up with the competition for buyer preference, Tesla was forced to raise prices for the Model Y Long Range in November 2023. The explanation for this, according to the economic portal it-times.de, lies in increased pressure in production as well as higher production costs.

This inflation measure initially proved effective, as reported by BNN Bloomberg: Tesla deliveries in China increased by five percent in November compared to the previous year due to orders placed before the announcement of the price increase at the end of October.

However, Tesla's Shanghai factory recorded a total decrease of 18 percent compared to the previous year.

The USA aims to separate itself from China due to its high dependence on Chinese supply products and raw materials. The "CHIPS and Science Act," signed by President Joe Biden in 2022, plans to invest approximately 52 billion US dollars in domestic semiconductor production to reduce reliance on Chinese imports, as reported by the White House.

Elon Musk, who has significant economic interests in China, has a different vision for the relationship between the US and China. During his visit to China in June 2023 and in meetings with top officials of the country, he spoke against an economic decoupling between the two countries, according to Global Times.