Elon Musk, billionaire and CEO of Tesla, revealed in a post on the X platform that his electric car company will not launch the latest version of the Model Y this year.
“The updated Model Y will not be released this year,” Musk said, adding that Tesla is constantly developing its cars and therefore “even cars that are 6 months newer will be a little better.”
Tesla has been slow to update its older models, as high interest rates have curbed investors’ appetite for expensive purchases while rival companies in China, the world’s largest car manufacturer, are producing less expensive models.
Tesla’s global car deliveries declined in the first quarter for the first time in about 4 years.
Last year, Reuters reported that Tesla was preparing to produce a newer version of the Model Y and aimed to start production in 2024.
In a report issued at the end of last month, the European Automobile Manufacturers Association indicated that Tesla is witnessing a noticeable decline in its European sales, recording their lowest level in 15 months.
The Investing platform said that last April, Tesla sold only 13,951 vehicles in Europe, which represents a 2.3% decrease from the previous year, and reached its lowest sales number since January 2023.
This decline comes despite a 14% increase in battery electric vehicle sales industry-wide.
Musk acknowledged production problems in the first quarter but remained optimistic, stating during a previous earnings meeting that he expected “stronger performance in the next quarter.”
This situation contrasts sharply with the strong growth of the electric car industry in China, according to Investing.
