Tesla is currently working on preparations for the updated Model Y in China, which could begin mass production as early as mid-2024, according to Bloomberg.

In the January-November period, Model Y retail sales in China were up 38.62 percent to 396,339 units, contributing 75 percent of Tesla's 527,859 sales in China, according to data compiled by CnEVPost.

The Model Y is one of the best-selling EVs in China, but it's also seeing a growing number of competitors.

Models including Nio's (NYSE: NIO) new ES6, which was launched on May 24, Baidu-backed Jiyue's Jiyue 01, which was launched on October 27, and Denza's Denza N7, launched on July 3, are all competing with the Model Y.

BYD catches up with Tesla in global BEV market share in Q3