Tesla faces such tough competition

Elon Musk’s electric-vehicle maker faces escalating price pressure from domestic rivals like BYD Co.

Tesla Inc. released an updated version of the Model Y in China, with improved configurations and the same starting price, in a push to better compete with local rivals.

Among the changes is a slightly faster 0-100 km/h acceleration time of 5.9 seconds, a new wheel design and added ambient lighting, the automaker said in a post on its WeChat account on Sunday. The starting price for the base model remains 263,900 yuan (just over $36,000), according to the post.

The move to sweeten the Model Y offering is much-needed for the US company, as it faces escalating price pressure from domestic rivals like BYD Co., which aims to sell 3 million vehicles this year. Nio Inc. and Xpeng Inc., two other upstart Chinese electric vehicle makers gaining traction, are also expanding their lineups.

Tesla in September revamped the Model 3 sedan with sleeker looks and longer range while slashing the prices of its premium vehicles in an all-out push to boost sales.