Tesla has launched a new version of its popular Model Y in China, strategically moving to maintain its competitive edge against local rivals.
The new Model Y starts at 263,500 Chinese yuan, approximately $35,935, marking a 5.4 percent increase from its predecessor, according to Tesla’s post on Weibo.
Tesla plans to begin deliveries in March, though the launch is limited to the Chinese market. This announcement follows a challenging period for the company, which experienced its first-ever annual decline in overall deliveries for 2024, as stated in Wall Street Journal. Electric vehicle manufacturers face intense competition globally, particularly in China, where companies like BYD, Xpeng, and Nio have gained ground. Despite these challenges, the Model Y remained China's best-selling electric vehicle throughout 2024.
A separate recent story in Fortune shows the stakes for this update. The Model Y, codenamed "Juniper," plays a vital role in Tesla's strategy, with around 1.2 million units delivered last year, making up two-thirds of the company’s total sales. According to Fortune, the refreshed model introduces significant changes, including new headlights inspired by the Cybercab robotaxi concept and extensive modifications to the passenger cabin. The long-range version, priced at 303,500 yuan ($41,400), boasts an improved range of 719 kilometres (447 miles) under China's testing standards. This represents a 4.5 percent increase over the current model. The refresh comes at a crucial moment for Tesla, as Fortune says the company relies significantly on this single product for its revenue and profits.
Fortune's story mentions that Tesla kept the turn signal lever, even though it was removed in the Model 3 Highland upgrade. This decision had caused some debate among Tesla customers before. The company aims to achieve a 20-30 percent growth in sales volume for 2025. However, analysts cited by Fortune suggest that while the refreshed Model Y might help maintain demand from existing customers, it may not significantly attract new buyers from competing brands.
Despite these challenges, Tesla's stock has shown remarkable resilience, climbing nearly 70 percent over the past year, according to Fortune. This is partly due to CEO Elon Musk's relationship with U.S. President-elect Donald Trump.
Sources:
https://fortune.com/2025/01/10/elon-musk-tesla-model-y-refresh-juniper-launch-china-march/
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