Tesla's Week of June 25th Brings Pricier Models Y, S, X, Stock Sag, and 4680 Settlement Update
In a significant move, Tesla is set to enhance the battery capacity of its Model Y, as reported by The Elec and other sources. The upgrade involves the use of LG's M53 cells, which will provide an additional 32 km (approx. 20 miles) of range on a full charge, making it the longest-range Model Y yet.
This battery upgrade will be exclusive to the long-range and dual motor variants of the Model Y, as confirmed by recent registrations with China's Ministry of Industry and Information Technology. In China, updates to the Model Y and Model 3 have resulted in a range increase without changing battery size, indicating improved efficiency alongside the new battery cells.
The Model Y "L" with the new battery technology and extended range is expected to be introduced during the second half of 2025. This upgrade is initially targeting the Chinese market.
However, Tesla's sales in Europe have seen a decline. In 2024, Tesla sales in Germany fell by 41%, and an additional 59% in January compared to the previous year. Across the 15 largest European markets, there was a drop of around 47% in Tesla sales to 9,605 electric cars. This decline may be due to the removal of a €6,000 discount on the Model Y in Germany at the beginning of the year and the delay of the Model Y refresh across Europe.
In a separate development, Tesla has made changes to the pricing of its Model S and Model X in Germany. The base versions of both models have become 17,000 euros more expensive, with the Plaid variants increasing by at least 11%.
Meanwhile, Tesla's CEO, Elon Musk, has been less active on Twitter, posting more about politics than Tesla. He has taken on the unofficial role of head of the DOGE commission, aiming to increase government efficiency.
In the competitive electric vehicle market, Chinese competitor BYD has managed to continue increasing its sales in the past year and at the start of 2025, with nearly half of these being pure electric vehicles. Shares of BYD had their best week since 2020. BYD is also planning to reveal plans for "smart driving" across its entire electric vehicle lineup, likely including features similar to Tesla's Autopilot and FSD AI software.
In Germany, Tesla sales of the Model S and Model X are no longer configurable, and the updated Model Y is now available for order, having launched in Asia two weeks earlier. The updated Model Y features smaller brake calipers, which reduce wind resistance.
Elsewhere, Saft has the right to offer a dry electrode technology developed for Tesla to other companies, following a ruling by an arbitration court. In China, the updated Model Y is available in two versions, while the older versions are no longer configurable.
Lastly, there is criticism of Musk's involvement in the US administration, and he is upsetting traditional Tesla customers. However, Musk remains focused on his mission to accelerate the world's transition to sustainable energy.
[1] The Elec: https://www.theelec.co.kr/ [2] China's Ministry of Industry and Information Technology: http://www.miitbeian.gov.cn/ [3] Tesla's September 2020 battery event announcement: https://www.tesla.com/news/battery-day [4] Tesla's July 2025 update announcement: https://www.tesla.com/news/july-2025-update
- The industry-leading battery upgrade in Tesla's Model Y, achieved through the use of LG's M53 cells, will not only be applied to the business sector, but also extend to the automotive and transportation sectors, contributing to the overall efficiency of the electric vehicle market.
- As Tesla continues to innovate in the finance sphere, the pricing adjustments for its Model S and Model X in Germany indicate a focus on profitability, reflecting the company's commitment to sustainable business practices and maintaining competitiveness within the electric vehicle industry.
- In the race for autonomous driving technology, Tesla's competitor, BYD, aims to catch up by unveiling plans for smart driving across its electric vehicle lineup, potentially incorporating technology similar to Tesla's Autopilot and FSD AI software, demonstrating the growing influence of technology in the automotive industry.
