Tesla Model Y refresh is coming to the U.S. in March

Tesla is officially rolling out its redesigned Model Y in North America and Europe.

Driving the news: The vehicle debuted just weeks ago in the Asia Pacific region, but the original Model Y isn’t going anywhere—both versions are now available for purchase on Tesla’s website.

• For now, U.S. buyers can only get the long-range all-wheel-drive launch series of the redesigned Model Y, starting at $46,490. The older version starts at $31,490.

• The refresh keeps the original’s proportions but introduces rounder edges, as well as smaller headlights and taillights which flank a redesigned lightbar.

• Ambient lighting wraps around the cabin. Passengers get ventilated seats and a larger 15.4-inch touchscreen upfront. Second-row seats now feature power recline and fold-flat functionality.

Looking ahead: Selling the Model Y refresh alongside its cheaper predecessor may boost sales of the latter.

• However, prices for its aging SUV and sedan models have declined in recent years as the company has looked to lift demand through discounts.

• Implementing refreshes allows prices to remain higher while giving previous customers a reason to return to the brand—but offers less incentive to do so than launching a new model.

• That said, Tesla is boosting prices by about $4,000 in Canada. The company will start delivering refreshed Model Ys in March.

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