Tesla Reportedly Making Changes to Its Most Popular Model; Stock is Top S&P 500 Gainer

Key Takeaways

• Tesla is reportedly set to revamp its most popular vehicle, the Model Y, at its factory in Shanghai.
• Work on the updated Model Y apparently is being prepared, with mass production set to begin in the middle of 2024.
• The report followed another that indicated China's BYD will likely pass Tesla this quarter as the world's biggest seller of EVs.
• Tesla shares were the biggest gainer on the S&P 500 in late-morning trading.

Changes are apparently coming to Tesla’s (TSLA) most popular model.

Bloomberg reports that the electric vehicle (EV) manufacturer is preparing to release a revamped version of its Model Y from its Shanghai factory.

People familiar with the matter indicated that the company is preparing work on the updates in China now, with plans for mass production to start in the middle of next year. The SUV was reworked in October, with a new wheel design and ambient lighting, but the 2024 model is expected to have much more obvious exterior and interior changes. 

The Model Y was the second-most popular car in the U.S. through the third quarter of this year, making up 2.5% of all light vehicles sold, according to Experian. 

The report came as Bloomberg also said China’s BYD is set to pass Tesla as the biggest-selling electric vehicle maker in the world, likely happening this quarter. Tesla's dominance of the U.S. EV market has slipped this year as new competitors, including both EV startups and legacy automakers, gain market share.

At around 11:35 a.m. ET, Tesla stock was up 2.2% at $262.24, making it the biggest gainer on the S&P 500. The stock has gained about 140% since the start of the year.