The new Model Y, a long range all-wheel drive variant, will cost US$59,990 in the US, according to the electric vehicle maker’s US website, 25% higher than its predecessor which costs US$47,990.

The new variant comes equipped with the supervised full self-driving software, which is an optional addition in previous Model Y cars for US$8,000.

Tesla will begin deliveries of the new car in March.

With the launch, Tesla now lists four versions of the Model Y in the US, with the new car costing the most, and even higher than the performance variant.

The new variant also has redesigned exteriors, upgraded features inside and a slightly extended range of 515km, according to Tesla.

Tesla first launched the Model Y in 2020 and it became the world’s best-selling car in 2023. The ageing model lost some sales momentum last year, hurt by competition from rivals in China, while in other markets demand for electric vehicles has weakened.