Over the last few days, we have been hearing about the new Model Y affordable variant, but now we have some new information regarding the Model Y Performance variant as well. The upgraded Model Y Performance model was recently seen in the wild around Palo Alto, California – right in our neck of the woods, where Tesla has its engineering headquarters building.
First spotted by Electrek and its editor-in-chief, Frederic Lambert, the camouflaged prototype vehicle provides a more in-depth view of some of the aesthetic and perhaps mechanical inclusions that Tesla intends to provide to its most popular vehicle. The car also features brand-new 21-inch forged wheels, indicating an update that focuses on design, aerodynamics, and speed, with an emphasis on performance.
21” Forged Wheels Suggest Performance and Precision
Some of the most striking changes on this sighting include the new 21-inch forged alloy wheel features that are specific to the Performance variant. The wheels also provide a unique, assertive appearance, besides also promising practical value in being stronger weight-wise and able to cool more quickly when put through extreme driving performance.
The wheels do not have a standard production method or are produced at equal cost, hence they are generally kept on high-end performance cars, and since their production is complex, these wheels are going to be a strong indication that Tesla is going to keep on ensuring that the driving dynamics and track-readiness are something they take very seriously.
🔥 New Model Y Performance spotted on the road near Palo Alto, California.
It features brand-new 21” forged wheels. pic.twitter.com/VUI1IbPUrp
— Tesla Newswire Fan (@TeslaNewswire) July 31, 2025
Subtle Design Tweaks Hide in Plain Sight
Though the vehicle that was observed was partially camouflaged, it still managed to provide a hint when it comes to the design direction Tesla will be going. The front and rear wings seem to have undergone minor but significant aerodynamic changes that may be directed at diminishing the drag and helping the vehicle boost efficiency even in the Performance version.
The new car also had a slightly revised front bumper with what seemed to be redesigned air inlets or diffusers. The back of the vehicle will also be subjected to slight changes, which will be announced in due course of the official launch of the car by Tesla.
Release Timeline and Market Impact
Tesla has yet to release an estimated launch date for the Model Y Performance variant. As per some media sources, the production could begin as early as late 2025 or Q1 2026 at the Fremont and Giga Berlin factories. With the Model Y being the global sales leader of Tesla, the Juniper update is bound to be the critical factor in maintaining the company’s momentum after the EV market becomes increasingly competitive.
Tesla is known to go through its rounds of iteration and unveil new upgrades at short notice, and both customers and investors are closely monitoring the situation.