2025 Tesla Model Y production starts at Shanghai Gigafactory with interesting design quirk, as BYD Sealion 7 and Kia EV5 rival's Australian launch edges closer

Mass-production of the updated Tesla Model Y is officially underway at the brand’s Shanghai Gigafactory.

The news was confirmed by CarNewsChina ahead of orders commencing in China at the end of the month. Australian examples are set to roll off the same assembly lines and onto our shores by May.

First examples were pictured in Tesla’s new Glacier Blue colour scheme, which is a much softer tone than the outgoing Deep Blue Metallic.

Interestingly, images obtained by CarNewsChina show that new Model Ys produced in China will have the ‘T’ logo embossed on their front bonnets, despite promotional images showing the car without one.

A Tesla spokesperson confirmed on Instagram the lack of a front logo will pertain to the US and European markets, but not in China, where front badges are apparently mandated by law.

Front badges are not legally required in Australia either, but given our Teslas are produced in China, it remains to be seen whether the new Model Ys will carry them or not. Tesla's retail website in Australia shows the Model Y with no logo but the Model 3 does, which gives us a hint Aussie delivered cars will arrive sans front badges.

The move, the spokesperson said, follows a new design direction for the brand, as pioneered by the Cybertruck, which prioritises the recognisability of the Tesla silhouette rather than any specific badges or logos.

Tesla will launch the new Model Y in two single and dual-motor 'Launch Edition' variants, which are rear-wheel drive and all-wheel drive, respectively.

Full specifications remain unconfirmed, but in China, the Rear-Wheel Drive variant will carry a 62.5kWh lithium-ion phosphate battery pack built by CATL, while the Long-Range All-Wheel Drive will use a 78.4kWh nickel-manganese-cobalt battery, as per CarNewsChina.

We do know in Australia that the Rear-Wheel Drive will provide 466km of range under the WLTP cycle, while the Long-Range All-Wheel Drive version will provide 551km, an increase of 18km on its predecessor.

Pricing will start at $63,400, up $7500 for the base model, while the top spec will start at $73,100, up $3500 on its predecessor. Both prices are at before on-road costs.

That puts it at $8410 more expensive than the BYD Sealion 7, which has just launched in Australia, and $6630 more than the Kia EV5, which starts at $6,630 (both cars are priced at before on-road costs).

In addition to the new design features, Tesla said the new Model Y has improved suspension, wheels and tyres for a smoother driving experience. Acoustic glass and better noise insulation are also said to improve road noise.

Inside, the Model Y’s central infotainment screen has grown to 15.4-inches, while there is now an additional eight-inch touchscreen for back seat passengers. There's also a new steering wheel, while the gear selector has moved to the central screen.

A plug in the frunk also allows it to be used as a cooler.

Expect more powertrain details on the new Model Y closer to the commencement of first deliveries in May.