Tesla is getting ready for volume production of the new Model Y Juniper so expect cheaper versions of the new Y to emerge in the coming months.

Elon Musk says ‘massive retooling’ taking place as Tesla prepares for February production

Tesla is getting its factories ready for Juniper Model Y production, as CEO Elon Musk made clear during the fourth quarter earnings conference call. “And now in Q1, we’ve got this massive factory retooling for the new Model Y,” CEO Elon Musk said during the 2024 fourth quarter earnings conference call on Wednesday. “That obviously has a short-term impact on output,” he added.

And Tesla Chief Financial Officer Vaibhav Taneja chimed in with a discussion on Wednesday about how Tesla is getting its costs down in preparation for production of the new Model Y. “Our journey on cost reduction continues. And we were able to get our overall cost per car down below $35,000, driven primarily by material costs,” Taneja said. “As we prepare for the transition to the new Model Y, for which we recently started taking orders in all markets. All our factories will start producing the new Model Y next month,” he added.

The Model Y was the best selling EV in the U.S. in 2024 by a long shot, outselling the closest non-Tesla rival, the Ford Mustang Mach-E, by over 320,000 units. And is one of the best selling cars in the world.

Expect a cheaper Model Y in U.S. as volume ramps up

The new Model Y – which boasts exterior design tweaks and numerous upgrades to the cabin and improvements to the ride – is available to order now in the U.S. but is currently offered as a pricey launch edition only. The fully loaded Launch version is priced at more than $61,000 and comes with extras (included) such as Full Self Driving, 19’’ Crossflow Wheels, and a tow hitch.

But the Model Y Juniper lineup in China — where it is slated for March availability like the U.S. — shows a more modestly priced Y, not just the one fully-loaded version being sold in the U.S. This may presage cheaper versions of Juniper in the U.S. as Tesla ramps up production in the coming months.

China Juniper RWD: 263,500 yuan (around US$36,000) for entry-level Rear Wheel Drive Model Y.
China Juniper AWD: 303,500 yuan (around US$42,000) for The Long Range AWD variant.

Tesla traditionally offers three trims in the U.S.: Rear-Wheel Drive, All-Wheel Drive, and Performance. While pricing could be slightly higher for the new Model Y (as it is in China), expect versions to become available priced way below the Launch edition. As a benchmark here is the pricing for the current (non-Juniper) Model Y in the U.S.:

Current (non-Juniper) RWD Model Y : $44,990 before federal tax credit and $37,490 with the credit (before taxes and fees).
Current (non-Juniper) AWD Model Y : $47,990 before federal tax credit and $40,490 with the credit (before taxes and fees).
Current (non-Juniper) Performance Model Y : $51,490 before federal tax credit and $43,990 with the credit (before taxes and fees).