The Design & Engineering Behind the New Model Y [Video]

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Tesla’s Model Y has held the title of the world’s best-selling vehicle—across all categories—for the past three years. And it takes an absolute masterstroke of engineering and design to make an even better, more popular vehicle.

In a newly released video (posted below), Tesla highlights some of the key upgrades and refinements made to the Model Y. While a previous deep dive explored the engineering details [insert link here], this latest video offers a broader look at the improvements. Let’s take a closer look.

Unique Design of the Model Y

The refreshed Model Y is all about individuality. While every Tesla model stands out in its own way, some are more similar than others. For example, the Model S and Model X share a similar front fascia design but still feel distinct. The previous Model 3 and Model Y, however, were often difficult to differentiate, even for seasoned Tesla owners.

That’s no longer the case. With the refreshed Model 3 and Model Y, the differences are clear enough to make each vehicle instantly recognizable. You’ll easily spot them on the road and distinguish them from their predecessors.

Design

The lightbar is the first thing you’ll notice about the design overhaul. Tesla aimed to give the vehicle a wider, more grounded appearance while also creating more space on the front fascia. This newfound space not only improves the vehicle’s look but also leads to some efficiency gains—more on that later.

The rear lightbar is equally striking. It’s a reflective, full-body design, marking a first in the automotive industry. The light is reflected onto a custom applique, which directs it downward, creating a puddle of red light behind the car. As Franz, Tesla’s Head of Design puts it, it gives the impression of an afterburner.

The reflective rear lightbar.

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Ride Comfort

Tesla has been focused on improving ride comfort, and the refreshed Model Y is a testament to that effort. While the original Model Y had more of a sports car-like handling, which was less ideal for family use, the new suspension design focuses on comfort by reducing impact harshness, all while maintaining Tesla’s signature steering feel and precise handling.

This is paired with in-house designed tires, developed alongside the tire manufacturer, resulting in the most efficient EV tires Tesla has ever used. With lower rolling resistance, improved handling, and reduced road noise, these tires contribute to a smoother, quieter ride.

The addition of acoustic glass across every glass surface in the vehicle, combined with upgraded sealing materials throughout the cabin and body, has led to a 20% reduction in overall vehicle noise. This is a substantial improvement for an already quiet EV.

The new silver-infused acoustic glass also reflects heat much more effectively than the older glass, reducing the strain on the vehicle’s climate system. This allows the fan to run at a lower speed, further reducing cabin noise and improving energy efficiency. Tesla has truly pulled out all the stops to make the refreshed Model Y one of the most comfortable and refined passenger vehicles on the road.

Efficiency and EPA Range

When it comes to efficiency, Tesla has meticulously reevaluated every component and design choice of the original Model Y, all while maintaining the same size and form factor that has made it a favorite for millions worldwide. The result? A 10% improvement in efficiency over the previous Model Y, which translates to more range.

The EPA recently announced the official range for the vehicle of 327 miles, beating Tesla’s estimate of 320 miles. This is an increase of 16 miles over the outgoing AWD Model Y, which had an EPA estimated range of 311 miles.

The front ducts have been widened thanks to changes in the front fascia, allowing for improved airflow over the tires and front brakes. Meanwhile, the new thermoplastic spoiler has been redesigned at the rear to be more aerodynamically efficient, contributing to the overall 10% efficiency boost. These updates improve performance and range.

Utility

The Model Y has become the ubiquitous Sports Utility Vehicle, capable of handling just about anything. In addition to improving its performance and efficiency, Tesla has also improved its practicality. The trunk opening has been enlarged, making it easier to load and unload items.

One standout feature is the power-folding rear seats. With just the push of a button, you can effortlessly fold them down or raise them back up. Additionally, the front seats automatically slide forward to create more space when you need to bring the rear seats down.

Tesla also gave the frunk a thoughtful upgrade. It now includes a new drain plug, and the bottom liner is fully waterproof—an improvement over the previous water-resistant version. This means you can fill the frunk with ice or use Tesla’s upcoming frunk cooler without worry. There’s even talk of more accessories on the horizon, and we can’t wait to see what Tesla has in store for this versatile space.

Safety

Safety has always been a top priority in Tesla’s vehicle design, and the Model Y has consistently earned 5-star crash safety ratings worldwide. It’s expected that the refreshed Model Y will continue this trend, maintaining Tesla's reputation for top-tier safety.

Additionally, the new front bumper camera offers valuable assistance for parking in tight spaces or when navigating off-road. While there’s no official word yet on whether these bumper cameras will be integrated into Full Self-Driving (FSD) or Smart Summon for the refreshed Model Y or Cybertruck, it’s definitely something to watch for in future updates.

Interior

Front and rear infotainment

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Inside the refreshed Model Y, Tesla has fine-tuned every detail to create a more premium feel. This includes the addition of ambient lighting, similar to the refreshed Model 3 and Cybertruck, as well as new materials throughout the cabin to elevate the overall aesthetic.

The redesigned heated and ventilated seats take comfort and support to the next level, which is a significant improvement for those who use the Model Y as their daily commuter. A comfortable seat can make all the difference on long drives.

In the rear, the updated infotainment system can now pair with two Bluetooth headsets specifically for the back screen. This means passengers in the rear can enjoy audio independently of the front, so if your kids want to watch cartoons, you can continue enjoying music or the news without any interruptions.

Tesla also developed new acoustically transparent materials, which are used to conceal some of the 16 speakers and the newly positioned microphones. Placing the microphones closer to the driver and front passenger’s heads improves clarity for voice recognition and phone calls.

Be sure to check out the full video below to see the meticulous design work and thoughtful improvements that went into the refreshed Model Y—it’s definitely worth a watch.

Design & engineering walkthrough of New Model Y pic.twitter.com/2jvMQOXGkM

— Tesla (@Tesla) February 8, 2025

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SpaceX to Land on Mars by Late 2026 With Tesla's Optimus

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Elon Musk and SpaceX have set some ambitious dates for the first Mars landing. Musk envisions launching the Starship toward Mars by late 2026—less than two years away. There won’t be any humans on board in the initial launches. Instead, Optimus will fill in for humans. Musk stated that human landings could follow as early as 2029 to 2031.

There are certain windows that make flights to Mars feasible for humans. So SpaceX is aiming for humans to be a part of the second or third Earth/Mars launch windows from now, which are 5 to 7 years away.

Tesla continues advancing Optimus, and SpaceX remains relentless. Another Starship test launch is in the books, all while maintaining their steady weekly cadence of Dragon missions to space.

Starship departs for Mars at the end of next year, carrying Optimus.

Civilization On Earth

Musk goes on to state something interesting in another post on X. He says that the key will be whether “Earth’s civilizational technology level will last long enough to ensure Mars can grow by itself, even if supply ships from Earth stop coming.”

The statement suggests two possibilities—that Earth’s civilization collapses or fails to advance enough to solve unforeseen challenges of sustaining life on Mars.

The key concern is whether humanity will remain technologically and industrially capable long enough to ensure that Mars can eventually become self-sufficient. If Earth’s civilization weakens, either due to collapse, stagnation, or regression, Mars might not get the support it needs to reach full independence—leading to the colony’s failure.

Thanks for letting us know, never been this excited about space in my life! pic.twitter.com/FEw3w2hk7x

— Teslaconomics (@Teslaconomics) March 15, 2025

Optimus

Tossing Optimus on board Starship is a smart move, instead of having smaller, single-task robots. Optimus also has the advantage of being upgradeable on Mars as long as the hardware holds up. It could be a lot like what we saw with Tesla vehicles, where the hardware was present for many years before the vehicle was capable of driving on city streets. Optimus’ capabilities will also improve over time, even if the hardware is older.

But, how does Elon Musk envision Optimus’ role on Mars?

The answer might be simple. SpaceX can leverage a fleet of Optimus robots to assemble shelters and infrastructure before humans even arrive.

Optimus is already highly capable, with precise hands adept at manipulating tools and objects. On Mars, it could construct basic habitats, set up survival systems, and even handle ice processing, water recycling, and food production.

These facilities will be absolutely essential for the first humans to comfortably settle in and begin work on expanding, maintaining, and preparing for proper human settlement.

Beyond construction, Optimus has a major advantage—it doesn’t need oxygen. Instead, mission planners would only need to monitor battery levels, wear and tear, and any potential damage.

That said, even humanoid robots face risks. Martian dust has long been an obstacle in space exploration, clogging solar panels, damaging equipment, and causing malfunctions. Tesla will need to redesign Optimus to withstand the harsh conditions. Its joints and components will need to be sealed against Mars’ relentless environment.

Starship

Mechazilla catching Starship7 Rocket Booster for the first time ever! 🚀
Incredible Achievement by @spacex

I can’t believe I’m alive to experience this! pic.twitter.com/GSe7RFDV06

— JoshWest247 ⚡️ (@JoshWest247) January 16, 2025

Starship, the largest rocket ever built, is immensely capable—but still in its early testing phases. SpaceX has dedicated hundreds of hours between each flight test, refining and improving with every launch. With several Super Heavy booster catches now under their belt, the next challenge is proving Starship itself can land.

Once SpaceX can launch, complete a mission, and safely land both the booster and Starship, the dream of reaching Mars may no longer seem so far-fetched.

With that, Happy 23rd Anniversary, SpaceX! We’re with you all the way as you push humanity toward the stars.

Happy 23rd Anniversary to @SpaceX! Founded on March 14, 2002, and still pushing the limits of what’s possible, here’s to the next chapter of making life multi-planetary! pic.twitter.com/mzvrdEagAn

— Teslaconomics (@Teslaconomics) March 14, 2025

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Tesla's Project E41: New Model Y With 20% Cost Reduction Coming in 2026

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According to Chinese blog posts from earlier last week, now vetted by Reuters, Tesla intends to produce a cut-down version of the Model Y, initially for the Chinese market, sometime in 2026.

This follows the launch of Tesla’s cut-down Model 3 for Mexico, as well as news that Tesla intends to launch their new next-gen model sometime in the near future.

Cut Down, But How?

The new Model Y, internally referred to as Project E41, is designed to lower the entry price of Tesla’s popular SUV—one of the most compelling options on the market due to its size, range, and versatility, especially following the launch of the refreshed Model Y.

To achieve this, Tesla is reportedly aiming to reduce the Model Y’s total cost by nearly 20%, according to reports from China. While exact changes remain unknown, we can make informed guesses based on the cost-saving measures Tesla implemented in the scaled-down Model 3 for Mexico.

Textile Seats and Trim

One of the most noticeable changes in the cost-cut version of the Model 3 in Mexico was the removal of vegan leather throughout the interior. In its place, Tesla opted for a durable textile fabric for the seats, reducing material costs. Additionally, any Alcantara trim pieces were replaced with the same textile in various areas.

No Heated or Cooled Seats

Another major cost-cutting measure was the removal of heated and cooled seats, along with the heated steering wheel. While these feature reductions may seem minor, eliminating them reduces various things, such as electrical components, harnesses, and ductwork that are required for seat ventilation.

No Rear Screen

One of the more unexpected changes in the reduced-cost Model 3 was the removal of the rear screen, despite it being powered by the same front infotainment computer as the front display. Given that the screen functions primarily as an additional display rather than a standalone system, the cost to include it is extremely low. It’s one of those really smart additions Tesla has added that increases value for the consumer with minimal cost to Tesla.

Tesla is unlikely to redesign or modify the vehicle’s wiring harness for this change, meaning a rear screen could potentially be retrofitted later by the customer. Based on replacement part estimates, the screen likely costs Tesla between $5 and $20 per vehicle, which acts as a secondary monitor for the infotainment computer.

Ambient Lighting, Acoustic Glass, Speakers

The final set of changes also focuses on the interior. Tesla replaced the RGB-capable ambient lighting with a simpler white-only version—likely saving only a few dollars per vehicle. While this may seem like a minor and somewhat unexpected cut, it could serve as an upsell opportunity to the standard RWD variant.

Additionally, Tesla reduced the use of dual-pane acoustic glass, now limiting it to just the front windows and windshield. This change drastically cuts costs but also affects cabin noise levels. The dual-pane glass played a key role in making the refreshed Model Y noticeably quieter, so this downgrade will likely bring noise insulation closer to that of the original Model Y.

As for audio, Tesla scaled down the speaker system in the Mexican Model 3 from 17 speakers to just nine, while also removing the subwoofers and one of the audio amplifiers. While this cuts costs due to wiring and speakers, it also has a large impact on the audio quality in the vehicle.

Project E41 is Not the Next-Gen Model

It’s important to note that Project E41 is not the same as the upcoming, more affordable next-gen platform, which is internally referred to as Project Redwood. While Project E41 focuses on a reduced-cost version of the Model Y, Project Redwood is designed to test Tesla’s manufacturing capabilities, using their innovative unboxed assembly method to reduce both costs and production time. The goal is to create a vehicle that is smaller and more affordable, while also keeping it safe and capable of self-driving.

Tesla previously confirmed that they plan to unveil new models—distinct from cut-down versions of the Model 3 or Model Y—during their Q4 2024 Earnings Call. However, the executive team has been careful not to divulge too many details about the upcoming model during interviews. This suggests there may be a lot more that has yet to be unveiled.

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